The XRP peaked at $ 0.51 this Saturday (30), before dropping to $ 0.39 a few minutes later. Still, the XRP appreciated 40% today and accumulates gains of 50% in the week.
On December 21, 2020, the U.S. Securities and Exchange Commission filed a lawsuit against Ripple, claiming that they had sold XRP as an unregistered security.
In the process, several cryptocurrency brokers withdrew the XRP from trading. To make matters worse, its market capitalization plunged 63%, or $ 16 billion, in a crash that has proved detrimental to many investors.
The first signs of hope came when the XRP price rebounded 30% seven days after the start of the year, after trading below $ 0.20.
Larry Chermak, research director at The Block, remains skeptical. He believes that XRP may be going through a GameStop moment. He tweeted about the price increase: ” The XRP is being artificially valued by a Telegram group of pump and dump and has increased by more than 50% in the last 45 minutes.”
Whatever is going on, the outbreaks come immediately after Ripple placed an order on Friday to refute the SEC’s claims. In the process, Ripple pointed out how the SEC neglected the value of XRP as a utility token. As the process explains:
“XRP’s functionality and liquidity are totally incompatible with securities regulation. Requiring XRP registration as a title is detracting from its primary utility. “
The big Ripple process
In the 93-page process, Ripple pointed out that XRP is open source and that its price has almost tracked Bitcoin and Ethereum. In addition, Ripple also filed a SEC Freedom of Information request to ask how they determined that Bitcoin and Ethereum are not bonds.
“ The SEC is filing this lawsuit 8 years after the creation of the XRP. How should companies have regulatory clarity when the SEC takes 8 years to file a lawsuit? In addition, Ripple correctly points out that by ignoring Ethereum, which clearly had illegal bond offerings, the SEC is arbitrarily choosing winners and losers. It is clearly unfair and I really think Congress needs to intervene here, ”said Dean Steinbeck, general counsel and COO at Horizen Lab, to Decrypt.
* Translated and edited with authorization from Decrypt.co