if XRP Hits $35, Ripple Unregistered $750M Sale Will be Irrelevant: Deaton

Attorney John Deaton believes Ripple’s past $750 million XRP sales that were ruled unregistered securities would be irrelevant if XRP ever hits $35.

Attorney John Deaton recently commented on one of the multiple XRP price predictions made by market watchers in the wake of the latest XRP upsurge. Deaton’s comments came on the back of a prediction that XRP could hit a lofty price of $35.

According to Deaton, if XRP ever hit the price target, then Ripple’s $750 million institutional sales ruled as securities by Judge Analisa Torres would be irrelevant. Deaton’s tweet considered the potential worth of Ripple’s 50 billion XRP held in escrow.

XRP $35 Price Projection

Amid the bullish momentum triggered by the favorable ruling in the SEC lawsuit, several analysts and crypto influencers have made projections of XRP’s future price. One such influencer is Ben “BitBoy” Armstrong, who recently made an ambitious forecast.

The Crypto Basic reported last week that BitBoy predicted a massive rally to $15 for XRP over 18 months. However, the industry commentator asserted that this price could go as high as $35 if Ripple times its IPO correctly. This would mark a 4,925% increase in XRP’s value.

Attorney Deaton Reacts

These price predictions mainly appeal to retail investors who have procured XRP, hoping for a price appreciation. However, responding to BitBoy’s forecast, attorney Deaton highlighted the effect such a price increase would have on Ripple’s XRP holdings.

“Ripple’s 50 billion XRP X $35 = not concerned with $750M in unregistered sales of XRP.”

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

Deaton put this figure at 50 billion. Recall that the company initially locked up 55 billion XRP tokens in escrow, planning to unlock 1 billion tokens monthly. The latest release occurred on July 1, as The Crypto Basic previously disclosed.

Following the frequent releases, Ripple now holds 41 billion XRP in its escrow wallets as of press time. These tokens are currently worth $28.5 billion against current rates. Should XRP skyrocket to $35 per token, these assets would be worth a whopping $1.43 trillion. 

Ripple’s Unregistered $750M XRP Sale Irrelevant 

Deaton rightly pointed out that the sheer magnitude of this value would ultimately make Ripple unconcerned with the ruling that it sold XRP worth $750 million to institutional investors in an unregistered security offering.

While Judge Analisa Torres ruled that XRP is not a security itself, she noted that Ripple’s past sale of XRP to institutional investors constituted an unregistered security offering. If this ruling stands, the firm would be liable to a fine as a penalty.

Deaton’s remarks emphasize that such a fine would be inconsequential to Ripple, as they would be sitting on $1.43 trillion if XRP ever hit $35. The attorney stressed that he is not saying XRP will hit $35. Instead, he is pointing out the effects of such an occurrence.