Ripple [XRP] is in a media firestorm again as yet another lawsuit is filed against it. This is the third lawsuit arguing that Ripple misrepresented XRP. The continuous dark cloud looming around Ripple can be attributed to the debate whether Ripple is a Security or not.
The Plaintiff’s Claim
The third lawsuit is filed by David Oconer alleged that “Here, the XRP offered and sold by the defendants had all the traditional hallmarks of a security, yet defendants failed to register them as such. The purchase of XRP constitutes an investment contract, as XRP purchasers, including plaintiff, provided consideration (in the form of fiat, such as U.S. dollars, or other cryptocurrencies) in exchange for XRP. XRP purchasers reasonably expected to derive profits from their ownership of XRP, and defendants themselves have frequently highlighted this profit motive”.
The CEO of Ripple, Brad Garlinghouse repeatedly asserts that Ripple is not a security. Garlinghouse being faced with his third lawsuit must be fighting the crosses a little easier. His trio of reasons is giving hopes for optimistic investors. However, the cautious investors are holding off and this factor is clearly affecting its prices.
The SEC’s stand on Ripple is ambiguous. This is deterring investors from further investments in this crypto. The SEC will be strongly persuaded to work with fixed dates because the court will require them to do so. Once the SEC says their verdict in court the crypto giant can shrug off this controversy.
A negative verdict might trigger a slump in the short-term investments and the long-term investors will be none the wiser. This would mean that registered brokered dealers will start to trade the asset. The dealers who go for only the big bucks. Also, the cautious investors will start investing once more and XRP can start testing the resistance level of $3.
XRP can gain an upward momentum with a positive verdict. The cryptocurrency is currently trading at $0.491449 and gaining by 4.54% 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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