Ripple XRP Newsletter

Ripple XRP Newsletter – August 2023 “The train has left the station”

Welcome to the Ripple XRP newsletter. Here are the highlights and latest updates on Ripple XRP and developments affecting XRP valuation

BRICS is abandoning USD for global trade settlement

The BRICS nations (Brazil, Russia, India, China, and South Africa) are planning to abandon the U.S. dollar for global trade settlement and use local currencies instead. This initiative aims to boost local economies and assert independence from Western economic influence. An upcoming summit in Johannesburg will discuss expanding the alliance and defining guidelines for new members. The goal appears to be to create an efficient integrated payment system for cross-border transactions as the first step and then potentially introduce a new currency. However, a BRICS version of the Euro is unlikely for now, as none of the countries involved show any desire to discontinue their local currencies

Wells Fargo Manager Predicts XRP “Anywhere From $100 – $500 Near Short Term”

On July 30, 2023, Shannon Thorpe, a Business Support Manager at Wells Fargo, predicted that the value of XRP, the digital asset used in the Ripple payment protocol, could reach anywhere between $100 and $500 in the short term, specifically within the next 4 to 7 months. This price prediction implies a possible upside from 14,185% to 71,328% from its current price of $0.71 per token at the time. Thorpe’s prediction is based on a number of assumptions and factors, including the recent SEC vs. Ripple ruling, the announcement of FedNow, the passing of a crypto regulation bill by Congress, and the ongoing testing of FedNow with banks.

@ValhilCapital white paper on XRP price

Valhil Capital, a private equity firm, has conducted a two-year research study to determine the fair market value of XRP, which they believe has been significantly affected by the SEC lawsuit against Ripple. The study, titled “A Comprehensive Approach to Determine the Fair Market Value of XRP,” presents six pricing models, revealing a valuation range of $3,500 to $22,000 per token. The researchers assert that XRP can function in two specific roles: as money to enable transfers of value and as a store of value.

The study aimed to evaluate the impact of the SEC lawsuit on the adoption of the XRP Ledger and determine its fair market value. By considering the extent to which the lawsuit hindered the realization of XRP’s intended use case, the study provides valuable insights into the potential worth of XRP. The researchers concluded that, excluding outliers, the fair value of XRP should have ranged from $3,500 to $22,000 a coin. It is important to note that the estimates from the six models are not future price forecasts for XRP but rather an attempt to determine its fair market value. Valhil Capital’s Managing Director, Jimmy Vallee, has also suggested that the government should buy out the entire XRP supply, but Ripple does not take this idea seriously. While Valhil Capital’s research may have other influences, it is safe to say that the SEC lawsuit has affected the price of XRP. When news of the lawsuit broke, many people sold off their XRP, and the price dropped significantly. However, the most important driver of the asset price, according to the analysis, is the extent to which the world decides to use XRP to store wealth.