Washington D.C., Dec. 22, 2020 —
The Securities and Exchange Commission announced today that it has filed an action against Ripple Labs Inc. and two of its executives, who are also significant security holders, alleging that they raised over $1.3 billion through an unregistered, ongoing digital asset securities offering.
Read at SEC press release https://www.sec.gov/news/press-release/2020-338
News of the arrest of two XRP executives spreads in the cryptocurrency world. XRP is a well know currency that is traded in many major cryptocurrency exchanges. With 100 Billion supply and $ 29 billion market cap by December 1, 2020, XRP price dropped sharply after SEC sueing XRP Labs. Current marketcap is $ 9 billion. XRP price on December 1, 2020 was $ 0.665 and today is $ 0.197. The price can be worse in the next few weeks.
Christian Larsen and Bradley Garlinghouse are also charged of selling unregistered XRP to investors worth $600 M. The selling is failed to comply with US SEC regulatory rules.
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XRP VIRTUAL CURRENCY OR CRYPTOCURRENCY
It is not debatable for cryptocurrency enthusiasts that XRP is centralized cryptocurrency or not cryptocurrency. The idiology and the technology is different from all general cryptocurrencies.
Fact about Ripple
- Ripple has non mined 100 billion XRP supply. 39 % are on the market and 61 % on behalf Labs Inc.
- Ripple does not use blockchain as the back up network but it uses Hashtree the patented network by Ripple Labs.
- If Ripple Labs is hacked , it will affect to whol networks and systems because Ripple network is centralized.
- Ripple Labs has full control when and how many XRP should be released in the market. That is different from all cryptocurrency in general where cryptocurrency coin issue is based on mining, or staking rewards.
- Why XRP is more acceptable than most cryptocurrencies for large institution? This is because decentralized technology is rather threat to banks and other big financial companies than a compliant technology. XRP is centralized virtual currency that can collaborate with most banks and other fintech companies.
Refference :https://coinmotion.com/ripple-is-a-centralized-virtual-currency/
Ripple Price
The price of XRP was dumped sharply after the SEC charging to XRP Labs. That is a good news to real cryptocurrency like bitcoin and ethereum because more traders sell XRP so the price plunges to $ 0.19 from $ 0.66. Future of Ripple depends on the Ripple Labs after the SEC Charging. How the Ripple Labs fights in the court. Current days, XRP price still has no certainty because of the Ripple is centralized cryptocurency, the price is very affected by the centralized issue. It is different from decentralized cryptocurrency when many exchanges were hacked, there will be no more effects to bitcoin, eth and other true decentralized cryptocurrencies.
