XRP, the native cryptocurrency of Ripple’s blockchain payment system is in hot water right now. After the US SEC (Securities and Exchange Commission) announced a lawsuit against it, the price index of the cryptocurrency has decreased dramatically. The situation got worse after multiple big and medium-scale exchanges announced the de-listing of the cryptocurrency from their trading desks. This led to further prince meltdown of the cryptocurrency and it is getting worse day after day. But, Ripple has implored the people to hear its side of the story. It is also launching a robust legal defence in court as well. Bitcoin and many other cryptocurrencies remain unaffected by this legal tussle and continue to post new highs.
According to an official statement from Ripple Labs:
The public and press have only heard the story from the SEC’s side, and we’ll be filing our response in a few weeks to address these unproven allegations against Ripple…., “The majority of our customers aren’t in the U.S. and overall XRP volume is largely traded outside of the U.S. There are clear rules of the road for using XRP in the UK, Japan, Switzerland and Singapore, for example.”
So, basically, the company is passing the buck of lack of legislation to the SEC and other government agencies. According to their point of view, XRP is registered as a cryptocurrency in many other countries. So, the SEC move is unwarranted and damaging to the company and the cryptocurrency. Ripple believes that the private companies shouldn’t suffer just because authorities are too slow at their job. Ripple also declared that it had sought regulatory clarity long before in multiple lawsuits, but to no avail. This is therefore damaging the sector and not just XRP alone.
There is some merit to XRP’s opinions. However, the very centralized and polarizing nature of the cryptocurrency means that even within the cryptocurrency industry, there are few who are defending it. The fact that Ripple Labs reportedly controls more than half of the cryptocurrency’s total supply is also another nagging issue that for some, goes against the basic principles of being a cryptocurrency. While Ripple may have been a controversial company that released a controversial coin, it still has significant financial muscle and it can mount a strong legal defence. The cryptocurrency itself has fell from around $0.5 to as low as $0.18 in the aftermath of the SEC lawsuit and resulting de-listings. However, considering the nature of the lawsuit and possibility of Ripple winning it, XRP may yet emerge from this issue stronger than ever.
Image source: pixabay.com
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