“Ripple’s Future is under threat.” What will happen to the XRP token
In the field of cryptocurrencies, a new high-profile litigation has begun with the participation of the American SEC. Experts told how this will affect the prospects of the Ripple project and its cryptocurrency in the future.
On December 23, the value of the XRP token on the Binance crypto exchange fell to a monthly minimum of $ 0.3. The reason is the lawsuit of the US Securities and Exchange Commission (SEC). She filed charges of raising $ 1.3 billion by selling unregistered securities under the guise of XRP tokens. Ripple Labs Inc. itself, co-founder Chris Larsen and CEO Brad Garlinghouse are named as defendants.
Following the accusations against Ripple, exchanges began delisting the XRP token. Over the past 24 hours, the cryptocurrency has been removed or operations have been suspended by the OSL, Beaxy and CrossTower trading platforms.
“Ripple is one of the main big coins with huge trading volumes and a large community. Large capitals of investment bankers are invested in the coin. It is not for nothing that they say in everyday life that ripple is a bank’s coin. If sanctions are imposed, bankers will successfully settle them. They have a lot of money, if necessary, they will pay fines. Yes, the coin is now declining amid negative news. But do not forget the main rule of trading: “Buy when blood is shed.”
There is also another opinion. The SEC lawsuit is actually putting Ripple at risk. The American regulator asks the court not only to ban further transactions with XRP, but also to return the profits from the sale of cryptocurrency and pay a fine.
“The decision on the future fate of the company will depend on the decision of the question, is the Ripple cryptocurrency a means of payment or is it an investment instrument acquired by investors for the purpose of speculation and profit from the growth in value? Back in 2015, Ripple reached an agreement with another US government agency, FinCEN, the XRP token was recognized as a convertible virtual currency, not a security. The Ripple website has already published a statement in which the company does not admit the SEC charges and plans to defend its position in court. “
In the history of the SEC, there are cases when, because of its claims, companies had to rethink their business model, but this did not lead to their closure. This was the case with Telegram, when the company wanted to issue a token-asset Gram and tried to get under an exception in relation to securities legislation. But although she was asked to return the money taken from investors, this did not lead to her closure or serious criminal liability. But there are cases when companies and individuals were criminally liable, which led to the closure of the company, as was the case, for example, with the cryptobank AriseBank.
This is not the first incident with the sale of digital assets that the American regulator is paying attention to. The Ripple team should pay attention to the EOS case. The project promptly resolved such a claim out of court. Most likely, Ripple will have to pay a fine for violations that the regulator saw, and the case will be closed, Klumov is sure. Now it is difficult to discuss the amount of the fine, but it will most likely amount to tens, and perhaps hundreds of millions of dollars, the expert said.
“You can take a risk and speculate on the movements of quotations, expecting positive news from the Ripple team or, conversely, a fine. But in the long run, there is no reason to keep the asset.”
This year, Ripple won a case against the R3 blockchain consortium (which includes over 70 retail and investment banks, including Barclays, HSBC, and UBS). This indicates that the company has serious legal support. However, in the case of the SEC, as both Facebook and Telegram show, “political will is more important.”
“The SEC continues to strictly adhere to the“ token is a security ”line, compliance with the laws on the public offering of financial instruments and securities must be carried out in strict accordance with the norms of US legislation … It has been repeatedly noted that this is often impossible due to technical reasons. But now the fate of Ripple is at stake. “
Ripple may continue to operate in other countries as well. So, on October 10, Ripple announced a successful cooperation with the Swedish bank SEB, when Ripple processed international transactions between Sweden and the United States for $ 180 million.