The concluding part of the year 2020 came with a lot of frenzy to the world of cryptocurrency. While other cryptocurrencies such as Bitcoin, Ethereum and Litecoin were basking in the euphoria of glory bath, ripple XRP in the opposite street kept drowning in the ocean of bloody bath. This came on the heels of lawsuits filed against ripple CEO, Garlinghouse and co-founder Chris Larsen by the US Securities and Exchange Commission on the allegation that the Ripple company had conducted an unregistered security offering of over 1.3 billion dollars.
In a swift swoop reaction to the allegation, the company, ripple, has come out to state that XRP is a decentralized cryptocurrency and should by no way be registered as an investment contract or security. This however never stopped the U.S. registered crypto exchange companies such as Bitwise, Bitstamp and Okcoin from delisting and disassociating themselves from ripple to avoid getting hunt down by U.S. regulators. As a result of this turbulence, the price of ripple has heavily corrected from $0.631 at as at 1st December to the price of $0.22 as at 28 December 2020 that is a dump of over 50% in space of a month. Image emphasis below:
With every picture around XRP now looking so bleak and blurred, the pertinent question to ask is "Any Hope For Ripple and XRP?
Oh well, this article will be bringing to you the best possible answers to the question below:
1. Ripple Defense over SEC's allegation: The company has come up with a defense over the allegation which to me appears to be very valid. Here is what the C.E.O, Garlinghouse has to say:
ripple does not have the discretion to tap the reserve funds of XRP as it wishes and the XRP has become increasingly decentralized as banks and other merchants uses it as bridge currency in cross-boarder transaction. The SEC regarding XRP as a security controlled by Ripple is akin to viewing oil as a security controlled by Exxon.
In addition, many social media influencers have lent their voices in solidarity to XRP which I believe stands out as a good defense over the allegation too.
Below is a screenshot of the post of a popular tweeter influencer with the handle name, MagicPoopCannon stating top reasons why XRP shouldn't be regarded as a Security which are as follows:
A. XRP was created before Ripple was founded.
B. Owning XRP doesn't provide shareholder interest in Ripple.
C. XRP can exist independently of Ripple.
D. XRP cannot be defined as "security" based on the 4 metrics of the Howey test.
Therefore, the U.S SEC's allegation against Ripple comes out weak.
2. U.S Security Exchange Commission exclusively affects the U.S exchange companies: the U.S SEC's case against Ripple is exclusively affecting the exchange companies under the jurisdiction of its regulations. This means, even if big exchange companies registered in U.S. such as Coinbase keep to their words of suspending XRP from their platform by 19th of January, XRP in other parts of the world will be working so fine. This has also been emphasized by another Tweeter influencer with handle @Danrocky.
He said:
Worst case XRP is a security in the US, @ripple will get fined (which they can afford). They will move headquarters outside US and ODL will move away from US.
This by the way means XRP will only loose about 5% of its users should the case come out in favor (though rarely) of the SEC. Hence the correction we are experiencing at the moment should be seen as a temporary correction due to FUD taking place in the U.S.
Finally, my advice to XRP investors and faithful reading this article is to grab this price correction as a rare opportunity and stack up their bags of ripple and hodl it patiently. XRP will bounce back big time to reward us all for our loyalty.
If you're in U.S. looking for an alternative exchange where you can move your XRP and continue your trading, here is a very reliable exchange called Remitano. It's very good exchange I have been using for years now. Your can research about them. if you're interested, please kindly use my link to register with them: https://remitano.com/xrp/join/276278
