XRP's future prospects remain unclear after Ripple announced on Monday that they had failed to agree on an out-of-court settlement.
Lawyers believe that the SEC case against Ripple can stretch for months or even years. All the while, the issue of XRP recognition as a security card will remain open, which will continue to limit its availability for trading and create fears among investors.
Further growth opportunities for XRP are severely limited due to the fact that the top managers of the project drain huge sums. Over the past day, at least 20 million coins have been received on cryptocurrency exchanges from Ripple CEO Chris Larsen, beincrypto writes.
Former Ripple Labs technical director Jed McCaleb remains the main seller of XRP. He regularly gets rid of billions of XRP, selling off its reserves. McCaleb receives tokens based on XRP trading volume, and it is estimated that in the coming months it may dump about 3 mr. coins on the market.
Mass sales may increase pressure on the XRP rate. However, McCaleb is not much concerned about the future of the platform. He is simply trying to sell his coins as much as possible and hopes to complete this process by the end of 2021.
Analysts believe that the sale of tokens by top managers of Ripple was one of the reasons that prompted the SEC to sue the company.
After the SEC filed charges, many Ripple exchanges and partners suspended or removed XRP from the list of available instruments.
Given the gloomy outlook and the sell-off of the token by the two largest holders, the year will be difficult for XRP retail traders.