XRP Ripple has lost nearly 40% of its value after the ticket price dropped from $ 0.51 on December 21 to $ 0.31 at the time of writing. The ticket dive appears to be the result of a lawsuit initiated against Ripple by the U.S. Securities and Exchange Commission (SEC). At the time of writing, the fourth-place crypto token had seen $ 4.85 billion trading volumes recorded in 24 hours.
$ 1.3 billion of lawsuits
As data on markets.Bitcoin.com suggests, the sale of the XRP token appears to have been triggered by Ripple CEO Brad Garlinghouse’s warning that the SEC is about to launch a lawsuit against the company. A day later, the SEC announced the $ 1.3 billion lawsuit against Ripple and two of its executives for allegedly conducting an unregistered security offering.
Meanwhile, as the XRP ticket continues to plummet, an angry Garlinghouse has accused the US regulator of being biased against Ripple by appearing to give BTC and ETH a free ticket. In its determination, the SEC states that the XRP is a security and is therefore subject to the orders of the US Securities Act. Garlinghouse, which has already threatened to leave the United States because of its regulatory approach, refuses to characterize XRP as a security.
In its many highly publicized attempts to push back against the SEC, Garlinghouse says the XRP token is a fully functional currency that offers a better alternative. He added that alongside bitcoin and ether, “the two Chinese-controlled virtual currencies” according to the company, XRP is one of the most capitalized cryptos.
Crypto Community Responses
However, the latter comment seems to have prompted a swift response from some bitcoiners and ETH creator Vitalik Buterin. In his tweet, Buterin accuses Garlinghouse and his team of “sinking to new levels of strangeness.” Creator ETH adds:
They claim that their shitcoin should not be called security for * public policy reasons *, namely because Bitcoin and Ethereum are ‘under Chinese control.’
Also pondering the debate is Mike Novogratz, the CEO of Galaxy who he said he “finds it strange that Clayton waited years to do this.”
Ryan Selkis, on the other hand, thinks the SEC is going to lose this case because he is “a legal stranger.” He added that classifying XRP as security “further hurts US businesses while global companies continue to make these markets.”
Meanwhile, at the time of writing, reports emerged that the Hong Kong trading platform has OSL has been suspended XRP services as a result of SEC lawsuit.
Do you think the XRP ticket is going to bounce back? Tell us what you think in the comments section below.
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