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Ripple’s XRP token breaks through $1.25 amid SEC scrutiny

source-logo  thecoinrepublic.com 05 November 2021 12:55, UTC

The real-time gross settlement system and remittance network that is Ripple (XRP) is currently on a rally as it broke through the $1.25 mark. This is after news broke out that its XRP token will be making a switch to the Ethereum (ETH) blockchain.  

Ripple’s big switch  

XRP’s price surged by 15% since Tuesday after the above-mentioned reports surfaced. Such a move to the Ethereum network would be a welcoming one as would facilitate the project’s liquidity. Moreover, wrapped XRP (WXRP) holders will eventually be gaining access to the Ethereum network’s entire ecosystem, according to Ripples‘ Chief Technology Officer and XRP Ledger architect David Schwartz.  

Further, it was revealed that Wrapped was deemed as its service provider as the tokens will be kept by Hex Trust which is a Hong Kong-based digital asset custodian. That said, each of these wrapped XRPs will be backed up by XRP in a 1:1 ratio.  

Hex Trust’s Head of Sales Calvin Shen highlighted that wrapped XRP will enable transactions alongside a broader range of decentralized applications. Also, it was learned that additional details about this so-called Ripple initiative will be disclosed this month.   

Reports suggest that the reason behind Ripple’s decision is that the said project is likely avoiding getting noticed by the United States Securities and Exchange Commission (SEC) which is the country’s exchange regulator. This is completely south of Ripple’s desire in making their ecosystem.  

XRP community’s concerns  

As for the XRP folks, they are having doubts about the project’s recent decision. Some of them are musing as to how they will utilize wrapped XRPs if the average commission on the Ethereum network hits $200 during peak times. Some consider Hex Trust as high risk since they’ll be the ones who’ll be keeping the coins.   

As of writing, Hex Trust has yet to address such concerns raised by the XRP community.  

#RelistXRP  

Meanwhile, there’s an ongoing plea over on Twitter as of late involving XRP as the hashtag “RelistXRP” has gone viral. This has caught the attention of the “XRP Army” as they showed some mad support toward Ripple.  

Coinbase CEO Brian Armstrong, on the other hand, tweeted on October 26 that the debacle between SEC and Ripple appeared to be going better than expected. The CEO went on to state that attacks on the cryptocurrency industry that eventually damages customers are “politically unpopular” and this is something that the SEC should realize.  

thecoinrepublic.com