XRP token skyrocketed on Thursday after a judge in the Southern District of New York ruled that it’s “not necessarily a security on its face.”
According to Coin Metrics, XRP’s price surged by an impressive 71%, reaching approximately 80 cents per coin. This development brought renewed optimism to cryptocurrency investors, as it indicated that other alternative coins might not be classified as securities either. Following the news, Polygon’s matic token experienced a notable increase of 17.82%, while Litecoin and Solana witnessed jumps of 18.35%. Cardano’s token also made significant progress, advancing by 20.31%. Moreover, Bitcoin and Ether received a boost as well, with both rising over 4% and 6% respectively.
“The judgments today are a huge step forward for the industry,” Chris Martin, head of research at Amberdata, told Agency. “By judging that XRP is not a security we’re starting to get clarity on what constitutes a security and what constitutes a commodity — the SEC will have to revise their tactics on several of their ongoing cases and I expect that this judgment will implicate several other tokens as non-securities.”
On Thursday afternoon, Coinbase made an announcement via Twitter stating that it would re-list XRP for trading on its platform. This decision came after the cryptocurrency had been previously de-listed. Additionally, Gemini expressed its interest in potentially listing XRP for both spot and derivatives trading, indicating their ongoing exploration of the asset.
“The judgment that institutional sales of XRP by Ripple constitute securities also has massive implications for the industry with several ICO’s now likely in the spotlight,” Martin added. “For exchanges caught in ongoing SEC cases, it’s not clear how this judgment will affect them – they’ve only been involved in secondary sales for the most part. But as we can see with prices today, the market is very bullish on the judgments.”