On December 21, 2020, the US Securities and Exchange Commission entered legal proceedings against Ripple, alleging they had sold XRP as an unregistered security.
Amidst the legal and semantic hair-splitting, multiple crypto exchanges delisted XRP. To make matters worse, its market capitalization subsequently plummetedby 63%, or $16 million, in a crash that proved ruinous for many investors.
The first signs of hope came when XRP’s pricerebounded by 30% seven days into the new year. In the last 24 hours, XRP reached highs of $0.51 dollars at 16:27 UTC before dipping to a low of $0.39 forty minutes later. In all, XRP shot up 40% today, continuing a week’s growth of about 50%.
Larry Cermak, director of research at The Block, remains skeptical. He believes XRP could be having something of a GameStop moment. He said that XRP could be the victim of a pump n' dump.
XRP is being pumped by basically a pump and dump Telegram group and is up more than 50% in the last 45 minutes.
Whatever is happening, the surges come immediately after Ripple made a filing on Friday to rebut the SEC’s allegations. In the filing, Ripple pointed out how the SEC overlooked XRP’s value as a utility. As the filing explains:
“The functionality and liquidity of XRP are wholly incompatible with securities regulation. To require XRP’s registration as a security is to impair its main utility.”
Ripple's big lawsuit
In the 93-page filing, Ripple pointed out that XRP is open source and that its price has roughly tracked Bitcoin’s and Ethereum’s. In addition, Ripple has also filed a Freedom of Information request from the SEC to ask them 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, told Decrypt.
"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 offering," said Steinbeck.
One thing remains certain: Ripple is determined to fight back tooth and nail for XRP.
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
Do you have the patience to wait 15 years before moving your crypto? One Bitcoin whale did, moving 50 BTC worth nearly $5 million that had previously sat untouched since July 2010.
The address, which starts with “04ba30,” received the 50 newly mined Bitcoin in 2010 when BTC was worth less than $0.10 per coin.
Now 15 years later, the whale—or a holder with a massive, valuable stash—performed its first transaction, sending out all 50 BTC worth $4.67 million at Bitcoin’s current price of $93,455....
CME Group on Thursday said it would introduce XRP futures on its derivatives marketplace for clients on May 19, the company announced Thursday.
The new product will allow clients to trade both a micro-sized contract of 2,500 XRP, and a larger-sized contract of 50,000 XRP.
"As innovation in the digital asset landscape continues to evolve, market participants continue to look to regulated derivatives products to manage risks across a wider range of tokens," Giovanni Vicioso, CME Group's global hea...
Institutional interest in Bitcoin intensified last month, even as retail investors reduced their exposure.
That’s the takeaway of John D’Agostino, head of strategy at Coinbase Institutional, who told CNBC Squawk Box that “pools of capital that have been buying during April” included “sovereign wealth funds, large institutional, long term duration pools of capital,” while Bitcoin exchange-traded funds (ETF) saw net outflows.
In April, D’Agostino said, “Bitcoin ETF flows were net negative to the...