A tweet from Crypto and Stock rating platform Weiss Crypto Ratings tells us that Ripple’s Brad Garglinghouse is not oblivious to the fact that despite the U.S. legal authorities clamping down on its network activities in the country, 95% of its customers are based in foreign locations. Since U.S based customers are restricted by regulators, from using Ripple XRP’s services, this may be a sign that the network needs to relocate, in order to replenish losses, and more importantly, thrive as a network.
Ripple’s chances at survival may be dependent on how fast it exits the United States
Surely, the firm’s CEO is aware that considering the present circumstances, the firm may only survive upon deciding to make a location change, as a senior executive had made it known earlier that the company was on the verge of shutting down and moving its headquarters outside the U.S. due to what it considers “hostile treatment” from the federal government and the SEC. It threatened to leave the States, following multiple regulatory bans in October.
Even after Ripple noted that the U.S. policies were not favorable to the cryptocurrency market, the company walked back on its threat to exit the country shortly after. This may be due to unrevealed downsides that the decision to relocate may cause the company, but with only 5% of its customers in the United States, Ripple just might have a better chance at survival.
As the world’s third-largest cryptocurrency, XRP’s $25 billion market cap makes up a significant part of the overall cryptocurrency market. The XRP’s deflationary supply structure which was noticed by asset management leader FRMO, also makes it apparent that the token is relevant for successfully modeling the future of digital currencies.
However, with regulatory policies slapped on the network nonstop, Ripple has a better chance of flourishing outside the country of its nativity. Ripple is not the first crypto-firm being forced to relocate from its country of start. In August of 2017, cryptocurrency exchange giant Binance, exited China following a cryptocurrency trading ban, to later settle in one of the most crypto-friendly countries, Malta.
Whether or not the solution for Ripple is to relocate, the future of cryptocurrency remains promising, especially after Ripple’s announcement to launch Flare, a smart contract fork of XRP. It is apparent that Ethereum’s 300% price surge, thanks to its DeFi growth, did not go unnoticed by the company which is now attempting to break into the world of decentralized finance. The massive airdrop scheduled for the 12th of December is already credited with the price pump that XRP has recently relished.