Why Is South Korea Falling in Love with XRP?
Just like regional food preferences, cryptocurrency choices vary from country to country. American crypto enthusiasts seem more inclined to invest in Bitcoin, while XRP is the most traded token in South Korea in 2023.
Indeed, the trading volume of XRP on the four largest exchanges in South Korea, namely UpBit, Bithumb, Coinone, and GOPAX, has risen sharply to reach $16 billion over the past four months.
XRP is part of the Ripple cryptocurrency payment system, which enables real-time fiat currency exchange between banks, corporations, government institutions, and other entities using the token. In essence, Ripple replaces the SWIFT system for financial market participants.
In addition to XRP, there are other cryptocurrencies on the list of the most popular altcoins in South Korea. Second on the list is Nano (XNO), which offers fee-free payment services to South Koreans almost instantly. They are followed by Dogecoin (DOGE) and Ethereum (ETC). However, XRP's trading volume is more than three times higher than XNO and DOGE.
Source: Kaiko Research
XRP is riding a wave of bullish momentum, as investors are banking on Ripple coming out victorious in its legal battle against the SEC. Will this bet pay off? Only time will tell!
The legal dispute has been ongoing for two and a half years. The SEC accuses Ripple, its CEO Brad Garlinghouse, and co-founder Chris Larsen of violating US laws. The regulator insists that the company should have registered XRP as a security. Ripple disputes the SEC's claims and maintains that XRP should be considered a digital currency.
However, in March, Ripple provided traders with an intriguing notification regarding Binance.US's efforts to save bankrupt crypto lender Voyager Digital. Binance's US branch intended to acquire Voyager's assets, including the VGX token. Ripple's notice stated that the SEC was against this acquisition, arguing that VGX was a security and Binance was an unregistered securities exchange. Nevertheless, the judge disagreed with the SEC's position, describing their arguments and demands as unclear. Ripple interpreted this event as highly favorable.
We’re seeing action through enforcement vs. setting clear rules and regulation which is what all of us in the industry desire, summarized Ripple President Monica Long.
XRP price fluctuations in February-April 2023 Source: CoinMarketCap
On April 21st, after two days following the global settlement agreement between the US government and Voyager's Unsecured Creditors Committee, the New York district court finally granted approval for the sale of the company's assets. Binance.US and Voyager Digital have overcome the last hurdle to finalize their deal.
Ripple's legal prospects are improving. However, common sense dictates that the company's chances of losing are not yet zero. XRP's dizzying rally in South Korea will surely come to an end if the court sides with the regulator. What could be a harbinger of such an ending?
The lawyer John Deaton, who specializes in crypto, is representing XRP holders as amicus curiae in the SEC v. Ripple case. Amicus curiae, or "friend of the court," refers to individuals or organizations that are not parties to a legal proceeding but can assist the court by providing relevant information or expertise. Deaton maintains that it is futile to expect insider information about the ultimate outcome of the court case.
The decision will be known only to the Judge and a select few court personnel before it is made public. Source: John Deaton’s Twitter
