The XRP PnD, or, Why The SEC Was Made In The First Place

I’m back in on this platform after awhile of being away.

I’ll be honest. I made some horrible calls on some trade and got dumped on. Badly. That turned me off crypto for awhile.

But alas, life is more important than money. And I’ll try putting some words together again for pennies worth of Ethereum on here.

At the end of the day, Publish0x is a nice place to be and a nice blog to maintain.

So let’s talk about XRP.

This is a coin that has been in the top ten for years.

Recently it underwent a global pump and dump that saw the price skyrocket close to $0.75 before the inevitable crash. 

That crash is still ongoing, and you only need to read the appropriate subreddits for some horror stories.

Pump and Dumps are common, unfortunately, in the crypto sphere.

This one was absolutely obvious, at least to those of us who have watched this market for years, now.

The idea of ‘holding’ to a desired price, the cornerstone of rhetoric in these groups, is simply propaganda.

Those orchestrating the pump promise their followers that they themselves will hold. "We're in this together, guys!" (hint: no, they're not)

Of course this is a lie, and anyone with half a brain (or first-hand experience at getting dumped on) will know ahead of time.

The bag holders will, hold, and the dumpers will sell and laugh on the way to the bank.

Thus, the cycle of bagholding continues.

There is, in truth, very little new to this whole thing.

It’s similar to the old card shark scam.

Let the mark win the first few rounds to get them confident and betting money.

Then when all their cash is on the table, up the difficulty and have them lose.

Pump and dumps work the same way: attract moonbois and set the price climbing.

Then dump.

That simple.

What’s particularly ironic about this whole thing is that the coin in question, XRP, has its parent company Ripple under investigation by the SEC for a number of shady things.

It’s not simply a question of XRP being an unlicensed security, but also Ripple selling companies XRP over-the-counter, and said companies unceremoniously dumping their bags on the market, an action that Ripple themselves may be legally unable to do.

From the lawsuit: 

“From a financial perspective, the strategy worked. Over a years-long unregistered offering of securities (the “Offering”), Ripple was able to raise at least $1.38 billion by selling XRP without providing the type of financial and managerial information typically provided in registration statements and subsequent periodic and current filings.”

The majority owners of the coin sold their assets while publicly declaring that they will do the opposite and hold.

“Meanwhile, Larsen—Ripple’s initial chief executive officer (“CEO”) and current chairman of the Board—and Garlinghouse—Ripple’s current CEO—orchestrated these unlawful sales and personally profited by approximately $600 million from their unregistered sales of XRP. Garlinghouse did so while repeatedly touting that he was “very long” XRP, meaning he held a significant position he expected to rise in value, without disclosing his sales of XRP.”

In the context of a recent defiance against Wall Street and hedge funds, there was an explicit rhetorical device used in support of the XRP pump.

“Fuck the SEC”.

The irony here, of course, cannot be overstated.

The SEC was created to prevent exactly these kinds of pump and dump scams.

Is it a hollow shell of what is used to be, and what it should be? Absolutely.

Does it regularly look the other way at crooks and thieves on Wall Street making off with billions from the working class? Without a doubt.

But its one of the few legal mechanisms in existence to prevent those sharks from outright slaughtering the entirety of working class pensions.

The entire pump and dump serves as an example of why we not just need the SEC, but we need an SEC that actually fights AGAINST sharks instead of serving as just another wrist-smacking tax service.

But braindead newbies and libertards will have to learn this the hard way.

Some Points On The Dump

Ripple owns around 60 billion XRP, of the 100 billion in existence.

The recent pumps saw transfers of XRP worth millions of dollars.

The list goes on. All in all, there was 2,094,477,515 XRP transferred before the price crash, based on twitter posts via Whale Alerts. 

At the same time, there were massive transfers of XLM, Ripple’s alcoholic failure of a cousin.

The massive transfers involve coinbase, bitstamp, Kraken, Binance and Uphold as withdraws / deposits for the XRP.

 There was also a billion XRP unlocked from Ripple’s escrow accounts. 

I repeat, a BILLION unlocked.

 These amounts were being transferred to exchanges prior to the dump, with Coinbase and Bitstamp being at least two exchanges with this money being deposited to.

Coinbase alone received 485 million XRP before the dump. 

This is an irony, of course, being that XRP is under investigation for securities fraud and as such, Coinbase closed their market for XRP.

Binance received 42 million. 

Bitstamp had about 106 million withdrawn. 

Bybit received 105 million. 

Uphold had about 80 million withdrawn.

CryptoCom had about 60 million withdrawn. 

Kraken sent 10 million to Nexo. 

All in all, about 423 million XRP was withdrawn from unknown wallets and sent to exchanges. 

Such enormous amounts, held by whales, knew well in advance of what was occurring. 

It can be assumed this XRP was used for the horrific dumps that brought the rally to its brutal end.

Per the SEC lawsuit, Ripple is already known to be headed by sharks that willingly sell, or use third parties to sell, their vaults of XRP. 

It would not be surprising, then, that Gar et. al. would be connected to this recent massacre. 

Do I think they created the rally? No. 

I think other opportunistic scammers used XRP’s response to the lawsuit for their own nefarious ends. 

Do I think Ripple sold during the rally? Absolutely.

The exchanges themselves, with their whale friends, likely agreed on the dump. 

The timing was obvious as well. 

2021/02/01  06:00 New York Time.

At the last minute of the hourly candle, the first dump occurred. 

The dump went from a price of 2219 sats all the way to 2074 sats. 10%. 

Three minutes later, the dump went from 2155 sats to 2016 sats. another ~10%.

The mega dump of all dumps happened at at the end of the hour. 2063 sat to 1619 sats.

A dump of about 400 sats, or 20%. In a single sell order.

From there it was a bloodbath. 

Conclusion

This whole PnD may have a ripple effect on the rest of the cryptosphere. 

Newbies will be burned. Again. 

Don’t be surprised at possible new lawsuits. 

Regulations designed to strangle instead of protect. 

The bear says that Bitcoin will be seen again as just a pyramid scheme, because those ripple effects occur on a river of shit that is XRP and other scammers.

The bull says that this is great. 

Because it finally puts a nail in the coffin on the bullshit lie that is XRP. 

Thus, BTC will be seen a new, better light, without the funky smells of bullshit from the corpse that is XRP.