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, author: Dabai Gaoguo, released with authorization.
When it comes to Ripple (XRP), everyone should be familiar with it. In this year’s institutional cattle, in addition to the two protagonists of Bitcoin and Ethereum, Ripple and Latiao (LTC) are also two very good altcoins. The currency has attracted everyone's attention and pursuit. The good gains have also allowed some people to enjoy dividends.
According to data from coinmarketcap, on the 22nd, Ripple ranked third in the encryption market with a market value of US$21.95 billion, and a 24-hour trading volume of US$11.63 billion. This achievement has benefited from the development of global cross-border payments in recent years. In this regard, Ripple can also be regarded as a veteran currency.
Ripple received notice from the SEC on Monday that the regulator plans to sue the company, CEO Brad Garlinghouse and co-founder Chris Larsen in federal civil court soon, according to media reports. The SEC accused the company of violating investor protection laws when it sold XRP. The lawsuit revolves around the SEC registration of the digital asset XRP launched by the company in 2012, which involves disclosing the company's business model, risks and financial status to the SEC and the public.
The focus of this debate is whether XRP is a security, and if it is, it is illegal.
According to the latest quotations, XRP failed to stop falling and stabilize today. It still fell by 9.27% within 24 hours. It once fell to $0.4023 at 5:30 in the morning, and is now at $0.43541. It has lost nearly one month's gains.
With the decline in the price of the currency, its market value ranking also dropped from the third place yesterday to the fourth place today.
(XRP daily chart on December 23)
In addition, with the decline in currency prices, XRP has also become the currency with the largest outflow of funds. As of 18:00 on the 22nd, the top three net inflows are: BTC (+$21.5339 million), THETA (+$7.7238 million), and PAY (+$1.4193 million); the top three net outflows are: XRP (- $114 million), ETH (-$54.18 million), BCH (-$27.1628 million).
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SEC Sues Ripple Sparks Discussion in Crypto Community
Ripple had previously paid a $700,000 fine and a $450,000 fine to the U.S. Attorney for the Northern District of California for violations of the Bank Secrecy Act brought by the Financial Crimes Enforcement Network (FinCEN).
The gods from all walks of life also expressed their views on this incident.
V God: The Ripple team is regressing to a new level of strangeness
In response to yesterday's news that Ripple will face the SEC's lawsuit against XRP for violating investor protection laws, Ethereum founder V God said on Twitter that it seems that the Ripple/XRP team is regressing to a new level of unfamiliarity. They claim that their junkcoins should not be called securities for public policy reasons, namely that Bitcoin and Ethereum are “Chinese-controlled.”
Vitalik’s tweet was mainly in response to Ripple’s CEO Brad Garlinghouse, who once said that US regulation is unfair to XRP and tried to limit the innovation of the US encryption industry to BTC and ETH.
In addition, God V also tweeted @SpokespersonCHN, the spokesperson of the Ministry of Foreign Affairs, and said in Chinese: Why haven't you sent us an order yet? Shall we use our masternode to make a fork for you and print a little ether?
The meaning expressed by V God should be: Why hasn't China taken action against Ethereum?
Blockstream Chief Strategy Officer: Ripple and XRP Have Nothing Innovative
In response to Brad Garlinghouse's claim that the SEC initiated a lawsuit against him because the US government and regulators cannot accept innovation, Blockstream Chief Strategy Officer Samson Mow just said that Ripple and XRP do not have any "encryption" or Innovation.
SBI Holdings President: Optimistic that Ripple will prevail in the final US ruling
In addition to the voices of opposition, the partners are also in solidarity with Ripple.
In response to the news that Ripple will face the SEC’s lawsuit against XRP for violating investor protection laws earlier on the 22nd, Yoshitaka Kitao, president of Japanese financial giant SBI Holdings, which invested in Ripple, tweeted today: “The Japan Financial Services Agency has made it clear that XRP is not a security. I am optimistic that Ripple will prevail in the final ruling in the US. SBI Holdings remains a strong partner for Ripple and looks forward to expanding together in Asia."
Ripple CEO: Ripple intends to go to court
Garlinghouse wants the SEC to sue immediately over the sale of the unlicensed securities. Ripple's cryptocurrency XRP is valued at $23 billion and is the third-largest cryptocurrency by market capitalization. He believes the SEC will name him and co-founder Chris Larsen as co-defendants in a lawsuit he expects to file soon.
“Today, the SEC decided to attack crypto. In his final resolution, SEC Chairman Jay Clayton is picking winners (in the cryptocurrency world) and trying to limit innovation in the U.S. crypto industry to BTC and ETH.”
"From a legal standpoint, this complaint is false," legal counsel Michael Kellogg said in an emailed statement. Other major branches of the U.S. government, including the Justice Department and Treasury's FinCen, have already Determined that XRP is currency. As such, transactions in XRP fall outside the scope of the federal securities laws. This is not the first time the SEC has attempted to exceed its statutory authority. It has been corrected before by the court and will be corrected again.”
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Ripple, Ripple Network, Ripple Coin (XRP)
Many people now equate Ripple with XRP, but these are completely different concepts, and XRP is only a part of Ripple.
As early as 2004, the Ripple project has been running. Ryan Fugger launched the first implementation version of Ripple. Ripple appeared earlier than Bitcoin, which only appeared in 2008.
In 2013, OpenCoin (the predecessor of RippleLabs) began to take over the Ripple project and launched a new version in 2013. At this time, XRP officially appeared in people's field of vision. Ripple is a digital currency that runs on a digital payment platform called the Ripple Network.
In most perceptions, XRP represents Ripple, but that is not the case. The relationship between Ripple and the XRP project is not strong, and many technologies and ecology are not specific to the project.
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Ripple CEO Brad Garlinghouse
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Centralized Ripple
Ripple has always been an outlier in the encryption market. Its existence and development have been controversial. Ripple and its three founders hold a large amount of Ripple and have been selling it for profit.
For cryptocurrencies such as Bitcoin, from the time of its birth, the most important thing to emphasize is its idea of decentralization, distributed storage, etc., while Ripple is just the opposite. Ripple, the platform that issues Ripple, itself, In fact, it is a very "centralized" cross-border payment platform.
If he dumped all his XRP on the market, it could cause the price of XRP to plummet. After amending the agreement with Ripple in 2016, McCaleb could sell a portion of his holdings based on the token’s daily trading volume. According to Whale Alert, the average amount of XRP that McCaleb sold per day was about 1.74 million, or $374,200. Based on his selling record, Whale Alert found that "his selling volume appears to be insignificant compared to the total daily trading volume."
Monitoring data on December 7 showed that Jed McCaleb sold another 29,571,546.74 XRP, worth about $17.87 million. On December 6th, Jed McCaleb had already sold an equal amount of XRP from his wallet address.
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Where does Ripple go in the future?
In the past, the SEC has brought charges against several high-profile token projects.
Block.one, the EOS company, was previously sued by the SEC. In the end, Block.one took money to settle the incident and settled with the SEC by paying a huge sum of $24 million. Although the price of EOS has made many people dissatisfied, the father of the funder, Block.one, is very rich, and this amount of money may not be a big deal.
In April, the SEC filed a lawsuit arguing that Telegram’s blockchain network Ton’s $1.7 billion sale of tokens called GRAM was illegal, saying it violated U.S. securities laws. As a result, Telegram's coin issuance plan ultimately fell through, and it was ordered to return more than $1.2 billion to investors and pay a civil penalty of $18.5 million.
In May, the SEC found that BitClave violated the registration requirements of the federal securities laws. BitClave agreed to return $25 million in ICO proceeds, in addition to paying $3 million in prejudgment interest and a $400,000 penalty.
Kik sold digital asset securities to U.S. investors in 2017 without registering as required by U.S. securities laws. On September 30, 2020, it was finally judged that KIK will need to pay a fine of US$5 million to the SEC. In the next three years, Kik will also issue a notice to the SEC before issuing, selling and transferring digital assets.
Judging from the above cases, the SEC’s prosecution of cryptocurrency, the best result is to pay the money and reach a settlement with the SEC, which will seriously lead to the premature death of the project. Judging from the current news, the SEC has not imposed corresponding penalties on Ripple, but judging from the attitude of the founder of Ripple, it seems that they will fight to the end with the SEC. If the litigation time is too long and the punishment is too heavy, the greatest impact may be That is the price of XRP.
