Ripple will not repeat the fate of TON, experts say
SEC will continue "stripping" crypto projects
Ripple Hearing Is A Wake Up Call for ICO
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The claims of the US Securities Commission against Ripple are very similar to the situation with the TON project, which was closed under pressure from the authorities. However, this time everything will be different, experts are sure, because banks, investors and a serious team of lawyers stand behind Ripple..
Ripple is ready to fight back the regulator
The hype surrounding the SEC litigation against Ripple is gaining momentum. Some experts are sure that the company should be closed, since its main goal is to enrich its creators. In particular, this opinion was expressed by the famous trader Tony Weiss. Similar accusations were made against the team of Pavel Durov, which worked on the creation of the TON blockchain. After six months of litigation with the SEC, the project had to be closed. However, with Ripple, everything is different, experts are sure, and the head of the startup, Brad Garlinghouse, admitted that he was preparing a tough response to the regulator. Will Ripple repeat the fate of TON, BeInCrypto asked experts.
Nikita Soshnikov, lawyer, director of Alfacash:
As far as I understand, the company’s legal strategy is precisely to prove to the court that legal news about Ripple and operating activities do not affect the XRP token price in any way. I think that the position of XRP in the market will be determined not only by the development of the lawsuit, but also by the appointment of Gary Gensler as the head of the SEC, who is known for his skepticism towards XRP..
Yes, the interesting thing is that a number of platforms did not completely abandon the XRP listing, but only limited transactions for US residents. This position, in my opinion, is the most balanced and this trend will continue until the end of the trial..
It is obvious that the SEC has a strong position that is indeed similar to the TON case and, moreover, is based on the precedent of the US Supreme Court (SEC v. W.J. Howey Co.). Ripple, in turn, may emphasize that XRP has been traded on the market for a long time and is not as personalized as in the case of the Gram token in the project of Pavel Durov. A new potentially negative case involving the SEC will be another warning to ICO organizers about the need to first of all take into account the US federal securities legislation.
Most important will be the position of the US Securities and Exchange Commission on Ethereum. But this does not mean that the situation will necessarily develop in the same way, that is, with the filing of a lawsuit by the SEC for recognition as a security. I think that the new leadership will first develop a balanced approach to the regulation of ETH 2.0 (BETH) and the concept of proof-of-stake (which can lead to a different legal characterization of tokens).
Vyacheslav Orskiy, analyst at the new cryptocurrency exchange KickEX:
Information about this process has already had a rather negative impact on the price of the XRP coin. Before the markets heard this news, the XRP price showed an increase of about 240% from local lows to highs. After the media published reports about the upcoming process, the XRP price quickly returned to its old values and is now consolidating within the $ 0.20 – $ 0.35 range. This consolidation hints that most investors who are not ready to hold the coin have already exited positions and the number of those willing to sell has decreased..
But nevertheless, this process puts pressure on the price and will not allow the coin to grow in a bull market. Probably, the majority of participants in XRP trading are in a wait-and-see position and are waiting for the results of the process, which can end either with a fine or much worse, namely, a ban on circulation in the United States. In the case of the first option, the project will get off with “little blood”, and the price of XRP will probably go into the growth stage. In the second, there will be much more destructive consequences, since in this case many financial structures using the Ripple blockchain and the XRP coin as a tool for transferring liquidity to each other will be forced to abandon it, which will cause serious sales and renewal of local minimums.
In the first case, we can assume that everything ended more or less well and many will return XRP trading on their sites. In the event of a bad outcome, the number of decisions to drop support for the Ripple coin will grow dramatically. First of all, these will be regulated exchanges that interact with American investors.
Ripple has been operating for a long time, occupies a significant position in the cryptocurrency market and has a large community. There is a chance of repeating the fate of TON, but it is extremely small. In any case, regardless of the outcome, a case will appear that will probably be able to motivate other projects to take a more responsible approach to the registration and registration of their fees, which will generally increase costs, but can also reduce the number of unscrupulous projects. And this, in turn, can have a positive impact on the market and attract more large investors, who at the moment prefer to stay away from the cryptocurrency market..
There are many who dislike the SEC. Maybe it will be EOS, which has already been fined by the SEC. Maybe this is the real reason for Dan Lapimep’s recent departure from “Block.one”.
Sergey Khitrov, Founder & CEО Listing.Help:
I believe that the litigation will continue to negatively impact the value of the XRP token. It should be noted that such problems of Ripple will definitely negatively affect the cryptocurrency market as a whole. Since, when even such an old and large project as Ripple has problems with the SEC, then what to expect for smaller players. The “too big to fail” situation has already turned out to be impossible on the example of TON. As a result, market players will start to be afraid to open new projects or start to close old ones..
Those who wanted to delist have already done it. However, the key factor here will be the further course of the trial. In the event of a serious accusatory base, the number of delisted exchanges will continue to grow.
Ripple, unlike TON, is a long-running project that has been active and popular in the market since 2012. I am sure over this long period of time, the company not only watched the SEC deal with other projects, but was preparing for a possible similar situation..
In this vein, the recent information about Michael Barr, a former US Treasury official who was previously a key member of Ripple’s advisory board, is interesting. He will soon be appointed head of the Office of the Comptroller (OCC). If appointed and approved, Barr will become one of the few US administration officials with in-depth knowledge of cryptocurrencies..
He joined Ripple as an advisor in 2015 and worked closely with the core Ripple Labs team. Will his appointment change the emerging negative attitude of the Biden administration towards cryptocurrency? Hope we’ll get an answer shortly.
To recognize an asset as a security, it uses the Howey test, and almost all ICO projects may not pass it. In our opinion, the SEC may gradually go on other large projects, namely Tether and TRON.
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