The CEO of Ripple has just published that Ripple is officially being sued by the SEC or the Securities and Exchange Commission. As a result of this publication, the price of XRP immediately fell, aka a 40% discount. What are Ripple's next steps?
Although Ripple was officially sued, CEO Brad Garlinghouse asked his employees not to worry. In the letter, he stated that employees need not worry because Ripple is on the right side and is supported by a strong legal team.
The SEC has just published its lawsuit against Ripple which was officially formed on December 23, 2020. This request is based on an alleged fundraising of $ 1.3 Billion via Initial Coin Offering or ICO XRP which is declared not officially licensed.
This case was approved by lawyers in the crypto field as a light case. However, Jake Chervinsky, Compound's top adviser, stated that this case was bad enough for Ripple's reputation.
Jake stated that “this case is bad enough for Ripple but not the worst case, because the worst case is securities fraud. However, what happened today was very close to that. XRP will be very helpless if the judge makes this case a securities case. However, if this SEC prosecution was carried out without solid evidence, XRP would be safe. "
The lawsuit gave Garlinghouse and partner Chris Larsen the option to settle the case separately. However, the company chose to continue to fight and survive aggressively. Ripple made sure they didn't want to make peace because they believed they were on the right side because they both believed they were right.
One of the biggest demands driving Ripple's side is the accusation of millions of US Dollars being used manipulatively on the trading platform. Additionally, the accusation that has infuriated Ripple is the alleged bribery of the company to use XRP without volunteering.
This news has unfortunately become a negative sentiment towards XRP in the crypto world which continues to depress its price. From five days ago to today, the price of XRP has fallen by about 40%
Currently XRP price is in the range of $ 0.35200 and still looks down. This five-day drop is one of the biggest crypto depreciations this month.
This depreciation occurred as a result of many people worrying constantly about Ripple's future as a company. In addition, due to the negative sentiment of the Ripple employees' own panic, many investors began to hesitate.
Although there is still hope for Ripple to leave America and continue the company's operations, it seems that the news of these demands is still worrying. This is also due to the potential for total company closure or penalty payments that can affect performance.
Until now, XRP's market capitalization also seems to continue to decline. XRP's rating recently fell from third to fourth, surpassing Tether, in the category of largest market cap in the crypto market.
the future of Ripple is still unclear and it is likely that the price depreciation will occur. Therefore there is still an opportunity for Ripple to fall deeper which makes the potential buy even greater, even though there is no sign of it going up again.
It is not going to bring good days for crypto world. XRP has alway been separated from the other coins (But for Stellar) due to its features but, this time, everything will be even worse :I