Fun

XRP Token Plunges Nearly 40% Following the Announcement of SEC Charges Against Ripple

News Feed - 2020-12-23 10:12:30

XRP Token Plunges Nearly 40% Following the Announcement of SEC Charges Against Ripple


Ripple’s XRP has lost almost 40% of its value after the token price dropped from $0.51 on December 21 to $0.31 at the time of writing. The token’s plunge appears to be the result of legal proceedings initiated against Ripple by the US Securities and Exchange Commission (SEC). At the time of writing, the fourth-ranked crypto token had seen traded volumes of $4.85 billion recorded in 24 hours. $1.3 Billion Lawsuit


As data on markets.Bitcoin.com suggests, the sell-off of the XRP token appears to have been sparked by Ripple CEO Brad Garlinghouse’s warning that the SEC was about to launch legal proceedings against the company. A day later, the SEC announced the $1.3 billion legal action against Ripple and two of its executives for allegedly conducting an unregistered security offering.



Meanwhile, as the XRP token continues to plummet, an angry Garlinghouse has accused the US regulator of being biased against Ripple while appearing to give a free pass to BTC and ETH. In its determination, the SEC says the XRP is a security and therefore is subject to the dictates of the US Securities Act. Garlinghouse, who has previously threatened to exit the United States due to its regulatory approach, rejects the characterization of XRP as a security.


In his many very public attempts to push back against the SEC, Garlinghouse says the XRP token is a fully functional currency that offers a better alternative. He adds that alongside bitcoin and ether, “the two Chinese controlled virtual currencies” according to the company, XRP ranks as one of the most capitalized cryptos.


Crypto Community Reacts


However, the latter comment appears to have prompted a swift response by some bitcoiners and the ETH creator Vitalik Buterin. In his tweet, Buterin accuses Garlinghouse and his team of “sinking to new levels of strangeness.” The ETH creator adds: They’re claiming that their shitcoin should not be called a security for *public policy reasons*, namely because Bitcoin and Ethereum are ‘Chinese-controlled.’


Also weighing in on the controversy is Mike Novogratz, the CEO of Galaxy who says he “finds it strange that Clayton waited years to do this.”



On the other hand, Ryan Selkis thinks the SEC is going to lose this case because it is “outclassed on legal.” He adds that the classification of XRP as a security “further hurts the U.S. businesses while global companies will continue to make these markets.”


Meanwhile, at the time of writing reports emerged that the Hong Kong trading platform OSL had suspended XRP services as a result of the SEC lawsuit.


Do you think that the XRP token is going to bounce back? Tell us your views in the comments section below. Side-Chaining $3 Billion in Value: There"s More Than 141,000 Tokenized Bitcoins Issued on Ethereum ALTCOINS | 3 days ago Flash Loan Attack: Origin Protocol Unveils Compensation Plan that Excludes Founders ALTCOINS | Dec 14, 2020 Tags in this story Brad Garlinghouse, BTC, ether, Galaxy, Mike Novogratz, Ripple, Ryan Selkis, The US Securities and Exchange Commission, U.S. Securities Act, XRP


Image Credits: Shutterstock, Pixabay, Wiki Commons Use Bitcoin and Bitcoin Cash to play online casino games here. Show comments

News Feed

XRP Price Risks Crash Below $2 As Correction Takes Hold, Here’s Why
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Bitcoin’s Hashrate Soars 42% Higher Over the Last 3 Months Following Crypto Asset’s 36% Price Increase
Bitcoin’s Hashrate Soars 42% Higher Over the Last 3 Months Following Crypto Asset’s 36% Price Increase While bitcoin has been hovering above the $60K handle for a great majorit
Bloxroute Releases Blockchain Distribution Network for Ethereum and Bitcoin Cash
Bloxroute Releases Blockchain Distribution Network for Ethereum and Bitcoin Cash On December 3, the crypto software firm Bloxroute’s cofounder, Eyal Markovich, announced th
Bitcoin bridge XLink resurrection underway post $10M hack
Josh O"Sullivan47 minutes agoBitcoin bridge XLink resurrection underway post $10M hackXLink faced a security breach involving almost $10 million, with $4.3 million recovered thanks to a friendly neighborhood white hat ha
Report: Pandemic Response Pushed Global Debt to $272 Trillion in Q3, $5T in Borrowing Expected in Q4
Report: Pandemic Response Pushed Global Debt to $272 Trillion in Q3, $5T in Borrowing Expected in Q4 The Institute of International Finance (IIF) says global deb
Tony Hawk’s Latest NFTs to Come With Signed Physical Skateboards
Tony Hawk"s Latest NFTs to Come With Signed Physical Skateboards Last December, the renowned professional skateboarder Tony Hawk released his “Last Trick” non-fungibl
Remitano Makes Cross-Border Money Transfer Much Easier With New “Cash-Out” Feature
Remitano Makes Cross-Border Money Transfer Much Easier With New “Cash-Out” Feature PRESS RELEASE. To simplify banking and meet its users’ Remittance ne
Investors brace for US election outcomes as crypto hits the ballot
Ana Paula Pereira4 hours agoInvestors brace for US election outcomes as crypto hits the ballotFIT21’s bipartisan support suggests a potential shift in U.S. crypto policy, while investors are focused on long-term trends
BONK Meme Coin Sees Wild Price Fluctuations and Massive Holder Concentration
BONK Meme Coin Sees Wild Price Fluctuations and Massive Holder Concentration After the all-time cryptocurrency price highs in 2021, suffering through the Luna implosion of 2022 and
Australia cracks down on online gambling with crypto, credit card ban
Ezra Reguerra1 hour agoAustralia cracks down on online gambling with crypto, credit card banThe government warned betting companies that failing to comply with the new rules could result in a fine of up to 234,750 Austra
Ledger hardware wallet expands crypto buying options with Uphold’s Topper
Helen Partz9 hours agoLedger hardware wallet expands crypto buying options with Uphold’s TopperTopper’s on-ramp entrance to Ledger Live comes at a time when Ledger supports only one off-ramp solution.4333 Total views
Helen Partz10 hours agoBinance CEO warns of phishing scams as Uniswap founder gets hackedThe number of social engineering attacks in the cryptocurrency industry has been rising, with major execs getting hacked recently.1