Attorney John Deaton recently commented on the potential impact of Ripple’s past unregistered sales of XRP, suggesting that their significance would diminish if XRP ever reached a price of $35. Deaton’s remarks followed the prediction of XRP hitting the lofty price target made by market watchers.
Bitboy’s Bullish Price Prediction Targets $35
Following the favorable ruling in the SEC lawsuit, several analysts and crypto influencers have made optimistic forecasts regarding the future price of XRP. One such influencer, Ben “BitBoy” Armstrong, recently made an ambitious forecast.
BitBoy suggested that XRP could rally to $15 over 18 months and potentially reach $35 if Ripple time the initial public offering (IPO) correctly, representing a staggering 4,925% increase in XRP’s value.
Deaton’s Reaction
In response to BitBoy’s bullish forecast, attorney Deaton highlighted the effect such a price surge would have on Ripple’s XRP holdings. He stated that Ripple’s 50 billion XRP, multiplied by a price of $35, would render the $750 million in unregistered sales insignificant.
This calculation takes into account the 55 billion XRP initially locked up in escrow by the company, with monthly releases of 1 billion tokens.
Ripple’s 50 billion XRP X $35 🟰 not concerned with $750M in unregistered sales of XRP.
Not saying it will happen,
Just making an observation if it did. https://t.co/tgNBgoHpOq— John E Deaton (@JohnEDeaton1) July 22, 2023
Currently, Ripple holds 41 billion XRP in its escrow wallets, valued at $28.5 billion according to current rates. Should XRP indeed skyrocket to $35 per token, the value of these assets would amount to a staggering $1.43 trillion.
Read Also: Based On 3 Notable XRP Trajectories, Chartist Projects $1.4, $3.7, or $200. Here’s the Chart
Ripple’s Unregistered Sales Relevance Diminished
Deaton further emphasized that given the magnitude of this value, any fines resulting from the ruling against Ripple’s unregistered sale of $750 million would become inconsequential.
While Judge Analisa Torres acknowledged that XRP itself is not a security, she determined that Ripple’s past sales to institutional investors constituted an unregistered security offering. However, Deaton’s remarks underline that Ripple would be sitting on a massive fortune of $1.43 trillion if XRP were to reach $35.
It is important to note that Deaton is not implying that XRP will reach $35 but rather highlighting the potential consequences should such an occurrence transpire.
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