XRP Ledger notes monumental transfer of 54.3 billion Palau Stablecoin, network effect could boost XRP price

XRPLedger facilitated a massive transfer of upwards of 54.3 billion Palau Stablecoin to a Trust Set.
The large volume transfers could act as a game changer for XRP with the resulting network effect and adoption fueled by Palau’s use of the XRPL.
Experts believe that large scale use of XRPLedger could drive XRP price higher in the long term.

XRPLedger witnessed a large volume transfer of Palau Stablecoin, a transfer of 54.3 billion PSC on XRP’s blockchain. A crypto expert behind the Twitter handle @w_thejazz believes this development could be a game changer for the altcoin.

Also read: SEC vs Ripple update: Pro crypto lawyer outlines four options for the regulator to fight the XRP ruling

XRPLedger adoption is on the rise

Palau, an oceanic island nation, is currently running a trial of Palau Stablecoin, linked to the US Dollar. The project started its pilot on XRP’s blockchain, the XRP Ledger. Based on data from XRP scan, Palau initiated transfers of more than 54.3 billion PSC to the Trust set through the XRPLedger.

Over the past three weeks, Palau has been leveraging XRPLedger and previously its Central Bank Digital Currency (CBDC) platform. It's important to note that these transactions are driving higher adoption of the XRP blockchain, and the token, using it to pay transaction fees.

Crypto analyst behind the Twitter handle @w_thejazz believes these developments are likely to emerge as game changing catalysts for XRP. The network effect from higher adoption of the ledger is expected to push XRP price higher in the long term.

A monumental transaction just took place on the #XRPL! A whopping 24 billion in Palau Stablecoin was moved in a TRUST SET transaction. The source? None other than r9PRtZGzAm57E3gybrssz493u2BRKmpqfM. This isn't just a transfer, it's a potential game-changer, indicating a…
— WallStreetBulls (@w_thejazz) July 28, 2023

The analyst believes that a significant movement of funds is likely to shift user sentiment and fuel the altcoin’s adoption.

At the time of writing, XRP price is $0.7152.

SEC vs Ripple lawsuit FAQs

Is XRP a security?

It depends on the transaction, according to a court ruling released on July 14:

For institutional investors or over-the-counter sales, XRP is a security.
For retail investors who bought the token via programmatic sales on exchanges, on-demand liquidity services and other platforms, XRP is not a security.

How does the ruling affect Ripple in its legal battle against the SEC?

The United States Securities & Exchange Commission (SEC) accused Ripple and its executives of raising more than $1.3 billion through an unregistered asset offering of the XRP token.

While the judge ruled that programmatic sales aren’t considered securities, sales of XRP tokens to institutional investors are indeed investment contracts. In this last case, Ripple did breach the US securities law and will need to keep litigating over the around $729 million it received under written contracts.

What are the implications of the ruling for the overall crypto industry?

The ruling offers a partial win for both Ripple and the SEC, depending on what one looks at.

Ripple gets a big win over the fact that programmatic sales aren’t considered securities, and this could bode well for the broader crypto sector as most of the assets eyed by the SEC’s crackdown are handled by decentralized entities that sold their tokens mostly to retail investors via exchange platforms, experts say.

Still, the ruling doesn’t help much to answer the key question of what makes a digital asset a security, so it isn’t clear yet if this lawsuit will set precedent for other open cases that affect dozens of digital assets. Topics such as which is the right degree of decentralization to avoid the “security” label or where to draw the line between institutional and programmatic sales are likely to persist.

Is the SEC stance toward crypto assets likely to change after the ruling?

The SEC has stepped up its enforcement actions toward the blockchain and digital assets industry, filing charges against platforms such as Coinbase or Binance for allegedly violating the US Securities law. The SEC claims that the majority of crypto assets are securities and thus subject to strict regulation.

While defendants can use parts of Ripple’s ruling in their favor, the SEC can also find reasons in it to keep its current strategy of regulation by enforcement.

Can the court ruling be overturned?

The court decision is a partial summary judgment. The ruling can be appealed once a final judgment is issued or if the judge allows it before then. The case is in a pretrial phase, in which both Ripple and the SEC still have the chance to settle.

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