The inflationary 2022 is a brutal year for most cryptocurrencies. The Akita Inu (SHIB2.28%) meme coin has fallen 88% from its all-time low last October. The XRP (XRP-2.98%) currency that powers cross-border payments on Ripple's Internet fell 65% over the same period. Both cryptocurrencies have fallen more deeply than stocks; the S&P 500 is down just 22% over the same period.

For the market as a whole and some specific cryptocurrencies, such sharp declines would be considered a great opportunity to score long-term winners at low prices. However, the rising tide of the future will not lift every data ship. Are XRP and ShibaInu ready to do it all over again, or have they seen better days?

What is the reason for XRP (Ripple)?

Ripple investors must keep up with the rapid development of two key points.

First of all, the real value of XRP is that consumers around the world use Ripple's distributed ledger cross-border payment system. For reasons discussed below, Bank of America does not currently utilize such a platform. But that hasn't stopped Ripple from expanding its strategic partnerships in other countries.

Core markets that have grown over the past two months include Brazil, Sweden, France and Thailand. Most of these announcements involved a deeper partnership with Ripple's ongoing partner, Spanish megabank Santander (SAN1.71%).

In a few words, as we speak, Ripple's cross-border payment system software has expanded its reach. In the long run, this development means that the price of CRP will increase.

Second, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against RippleLabs in December 2020. The SEC fabricated the lie that the XRP currency is an investment security subject to the same regimes and requirements as individual stocks, bonds, and mutual funds. assets. Therefore, the original offering of XRP currency violated the new securities registration requirements, resulting in suspected illegal financing of 600 million US dollars.

Ripple is reluctant, thinking that XRP is a multifunctional tool rather than a financial tool. Therefore, it should be treated like the dollar, euro and other currencies. According to this standard, there is nothing wrong with the most original issuance of coins.

Major cryptocurrency exchanges quickly shut down XRP transactions for U.S. customers, where the digital currency remains valid. The wheels of legal regulation are slow to spin, but many observers now expect a final ruling in the first half of 2023.

The verdict is a make-or-break moment for RippleLabs and the XRP currency. A ruling focused on the SEC will lock in your existing XRP holdings until then, even if the Ripple network succeeds in other markets.

On the other hand, a ruling strongly in favor of Ripple could send the XRP currency skyrocketing and signal how governments should regulate the cryptocurrency's trading access in the long run.

What is unique about the Akita dog?

ShibaInu started out as a joke, hitching a ride on the older and more famous meme coin Dogecoin (DOGE0.09%). But ShibaInu has evolved into a more serious blockchain system, while Dogecoin sticks to its flawed guns.

Bitcoin is still a copy of BTC (BTC0.42%), and there is no appreciation currency limit of the original cryptocurrency. Its only unique feature is the super cute marketing plan. Bitcoin is also subject to massive inflation, and its price should drop to zero in the long run.

In comparison, ShibaInu is the most advanced currency based on the Ethereum (ETH0.47%) blockchain platform. Ethereum's blockchain smart contract function makes ShibaInu an option for developers of decentralized financial applications. In addition, ShibaInu sets authority-enforced limits on the overall supply of money that can be used to protect the system from inflation.

ShibaInu may well seem like an ill-advised idea, but it actually means a healthy living developer platform without the inflationary burden you'd expect from a real mockery.

Final Verdict: Tie!

Ultimately, cryptocurrencies will be only as valuable as they are. While I appreciate ShibaInu's fresh attempt at effective technology platform marketing and community governance, Ripple comes out on top in finding real-world applications.

This protracted SEC controversy is the mockery of this storm. This example set examples have the ability to enhance or destroy Ripple and XRP. I'm not a guru, and I don't want to express an opinion on where the main money will fall. Therefore, I can't single-mindedly recommend that I make a lot of investment in Ripple.

As such, these currencies are all very interesting, but don't look like solid long-term investments at the moment, with too many doubts in the air.