CoinDesk reports:
The lawsuit between Ripple Labs and the U.S. Securities and Exchange Commission began in 2020 and is currently in the trial phase. Despite Ripple securing several victories before the trial began, it is still unknown when the match will end and who the winner will be.
The main goal of the court is to determine whether XRP should be classified as a security, and whether Ripple (the company behind it) engaged in unregistered securities sales when distributing tokens to investors.
This is a major decision that could impact the legal status of XRP in the eyes of regulatory authorities, so many investors are likely considering this in their calculations.
We decided to ask ChatGPT what would happen to the price of XRP if this lawsuit had never occurred.
Would the price of XRP be higher?
ChatGPT acknowledges that this is a speculative topic and mentions that several factors need to be considered before determining whether the price would be higher.
First, market sentiment. AI indicates that the lawsuit has created significant uncertainty and negatively impacted investor confidence. Without it, market sentiment might be more positive.
Furthermore, without legal issues, Ripple would likely be able to establish more partnerships with businesses and financial institutions, leading to greater adoption.
In the days when the lawsuit initially occurred, many exchanges delisted XRP or restricted its trading. While many have since relisted it, this certainly hurt the accessibility and trading volume of XRP.
The absence of the lawsuit would provide more regulatory clarity for XRP, making it a more attractive investment and mitigating legal uncertainty.
The chatbot concludes:
To quantify this, one could look at historical data before the lawsuit and compare it with the performance of other major cryptocurrencies. However, any estimate would be speculative. In general, experts believe that without the lawsuit, the price of XRP would likely be much higher, reflecting its potential and utility in the market without the legal burden.