Ripple fights back in the courtroom, and XRP’s price begins to climb again.
Although Bitcoin and Dogecoin watchers enjoy Elon Musk underwrites’ ebbs and flows, while LINK marines beat their chests about the highest growth in 2020, XRP’s story has now been a series of courtroom drama.
Last December 21, 2020, the US Securities and Exchange Commission entered legal proceedings versus Ripple, claiming that they sold XRP as an unregistered security.
During the legal and semantic fault finding, several crypto exchanges have delisted XRP. To make it worse, its market capitalization eventually plummeted by 63%, or $16M, in a crash that has proven devastating for several investors.
The signs of hope showed when XRP’s price bounced back by 30% seven days into 2021. In the last 24 hours, XRP reached highs of $0.51 at 16:26 UTC before dipping to a low of $0.39 forty minutes later. In total, XRP shot up to 40% today, continuing a week’s rise of about 50%.
The director of research at The Block, Larry Cermak, is still doubtful. He believes that XRP might be having a sort of a GameStop moment. He stated that XRP might be a victim of a pump n’ dump.
Whatever happens, the surges come right after Ripple made a filing last Friday to refute the SEC’s allegations. In the filing, Ripple highlighted how the SEC overlooked XRP’s value as a utility. As the filing explained:
“The functionality and liquidity of XRP are wholly incompatible with securities regulation. To require XRP’s registration as security is to impair its main utility.”
Ripple’s huge lawsuit
In a filing that has 93 pages, Ripple pointed out that XRP is open-source and that its price has tracked Bitcoin and Ethereum’s price. Additionally, Ripple also filed a Freedom of Information request from the SEC to determine how they determined that Bitcoin and Ethereum are not securities.
“The SEC is bringing this action 8 years after XRP was created. How are companies meant to have regulatory clarity when the SEC takes 8 years to bring an action? Also, Ripple rightly points out that by ignoring Ethereum, which clearly had an unlawful securities offering, the SEC is arbitrarily picking the winners and losers. It’s clearly unfair and I do think Congress needs to step in here,”
Dean Steinbeck, general counsel and COO at Horizen Lab
“If we’ve learned anything from previous SEC enforcement actions, the big players like Ripple will get off with a slap on the wrist relative to the size of their $1.3 billion unregistered offerings,” added Steinbeck.
One thing is for sure: Ripple is strong-willed to fight back for XRP.
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