Ripple’s XRP price may go downhill as SEC verdict looms
The debate whether XRP is a security or not seems to be plaguing Ripple’s XRP. Many predict a huge dip in prices if the Security Exchange Commission [SEC] declares XRP a security. Ripple is amidst a number of lawsuits where the core problem is in regard to the status of the XRP token. One among the lawsuits claim that Ripple created XRP out of thin air as a part of their initial coin offering used to raise hundreds of millions of dollars.
The XRP spokesperson defended their stance on XRP token not being a security fearing the speculation of a price dip. He said that “Everyone is free to say what they want or pursue their own agenda in the media, but ultimately the facts around XRP will win out over uninformed speculation. XRP doesn’t give its owners shares in Ripple, the XRP Ledger is decentralized among 150 plus independent validators – Ripple operates only 14 of them – and XRP would continue to exist even if Ripple disappeared tomorrow. Based on these facts – and many more – we continue to believe XRP should not be classified as a security”.
XRP token is considered to be an independent digital asset by Ripple. Major fears surrounding the token lies around the fact that Ripple, a technology company, possesses over 60 billion of the 100 billion tokens created. Ripple has always justified their position. Their Chief market strategist can be noted saying,” We absolutely are not a security. We don’t meet the standards for what a security is based on the history of court law.”
According to Express.co.uk Samuel Leach, CEO and Founder of Yield Coin, predicts the worst for XRP. He says that the token can expect a huge dip in prices if the verdict of the SEC turns out to be bad news. He said: “For now most cryptocurrencies to be listed on US exchanges have to pass the Howey test, to determine whether an asset is a security or not whether an investment is made with the profits to come solely from the efforts of others. The major issue with this is that security tokens are legislated by the SEC, which has the ultimate authority to determine whether the US investors can invest in the financial instrument in question, as well as whether these need to be accredited investors.”
XRP can gain an upward momentum with a positive verdict. The cryptocurrency is currently trading at $0.45 and gaining by 2.17% against USD. The SEC’s ambiguity on the Ripple’s dilemma is might be a roadblock in the growth of the company, however, the company has braved all storms in its history and proves to be an investment with remarkable potential.
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