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XRP community demands ‘seat at the table!’ What are the Ripple effects?

The ‘Ripple v. SEC’ lawsuit, to a certain extent, has been fueling volatility in the already erratic XRP market. In fact, there have been varied predictions about the positive and the negative impact the outcome of the lawsuit could bring. However, the most impacted by the result will likely be XRP holders. Ripple and the…

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XRP community demands ‘seat at the table!’ What are the Ripple effects?

The ‘Ripple v. SEC’ lawsuit, to a certain extent, has been fueling volatility in the already erratic XRP market. In fact, there have been varied predictions about the positive and the negative impact the outcome of the lawsuit could bring. However, the most impacted by the result will likely be XRP holders.

Ripple and the XRP community

Ripple has always had the support of the XRP community to fall back on, whether it was during the winter that followed the 2017-18 bull market or the recent struggle with United States regulators.

However, recent developments in the lawsuit have left many in the community concerned. Such concerns have risen from the SEC’s recent filings, with some of them alleging that Ripple “failed to develop a use case” for XRP. What’s more, it’s also been alleged that Ripple CEO Brad Garlinghouse admitted to this during the launch of On-demand Liquidity [ODL] in 2018.

The same was pointed out by John Deaton, the lead attorney in XRP Holders’ motion to intervene, recently. He tweeted,

According to the SEC, @Ripple failed to develop a use case for #XRP. They said @bgarlinghouse admitted to this in 2018 when he launched ODL.

That means #XRPHolders developed the ecosystem and Ripple benefited from the efforts of us.

That makes #XRP a security of XRPHolders !

— John E Deaton (@JohnEDeaton1) May 23, 2021

The timing of the aforementioned statement is particularly important, especially since some are again speculating a possible settlement between the SEC and Ripple. It is understandable, therefore, that some XRP holders are panicking and are now demanding a seat at the discussion table.

The said sentiment was reiterated by Deaton in a later tweet, with the attorney claiming that he is “trying to intervene so that XRPHolders have a seat at the table in order to be heard during any discussions.”

Here, it’s worth noting that despite such speculations, the likelihood of a settlement at this time, according to many, remains remote.

Thank you for your answer.

I agree that I shouldn’t speculate like that, but it if it is even a remote possibility, then it is even more important that you get a seat at the table. I don’t see the SEC or Ripple as being the protectors of XRP holders.

Again, thank you.

— Research Omega (ARO) 🔥 (@research_omega) May 23, 2021

XRP sales shaking confidence

While the lawsuit is bringing out the concerns of XRP holders, the attention of many in the community has also been directed to the sales conducted by the giants of Ripple like Brad Garlinghouse, David Schwartz, and Chris Larsen. Although CTO Schwartz called it “toxic nonsense” to assume the selling of digital assets as “evil or moral failing,” others believe it to be a sign of low confidence.

Similar concerns were raised several times when former Ripple CTO Jed McCaleb carried out sales of XRP until recently.

Over the past week, XRP, like the rest of the market, has been seeing major corrections. However, this did not seem to affect McCaleb’s XRP sales. As AMBCrypto had previously reported, McCaleb has sold nearly 275 million XRP since the beginning of May, a period during which the value of the digital asset collapsed by 62% from $1.69 to $0.6263.

These strong corrections have left XRP holders blown and as the digital asset tries to find stable ground, Ripple may have to note the growing discontent within the community and finally offer them a seat at the table.


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Analysis

SEC, Ripple, XRP Lawsuit update: This is ‘something obviously the SEC does NOT want to see happen’

The ongoing case between the United States SEC and Ripple Labs was already seeing a lot of back and forth before John Deaton and XRP Holders filed a motion to intervene. While the defendants, for their part, have come out in support of the movants’ motion in “limited capacity,” the regulatory agency has vigorously argued…

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SEC, Ripple, XRP Lawsuit update: This is ‘something obviously the SEC does NOT want to see happen’

The ongoing case between the United States SEC and Ripple Labs was already seeing a lot of back and forth before John Deaton and XRP Holders filed a motion to intervene. While the defendants, for their part, have come out in support of the movants’ motion in “limited capacity,” the regulatory agency has vigorously argued against both the motion and Ripple’s “limited participation” idea.

The SEC’s latest response to both has fueled quite a reaction within the crypto-community, with most on the fence with respect to what they expect might happen next. Jeremy Hogan, however, isn’t one of them, with the popular attorney recently going on Twitter to air his views on the agency’s response to XRP holders’ motion to intervene.

According to Hogan, the aforementioned response “jumped the proverbial shark,” with the attorney implying that the SEC’s latest argument is unlikely to fly and be accepted by the court in the present case. Here, the argument that Hogan was referring to was the allegation that Ripple and Deaton and XRP holders are in cahoots with each other and are colluding to beat the SEC.

Such an allegation is an extension of similar statements made by the SEC in the past. In fact, in its initial reply to Deaton’s motion to intervene, the agency had accused the movants of “reciting” the defendants’ litigation position. Even in its present response, the SEC has alleged that the movants won’t be impartial and objective participants, with the agency adding,

“….. Movants would act as friends of the defendants, not true friends of the court.”

It’s worth adding, however, that for his part, Hogan seemed to agree with the SEC’s contention that XRP holders shouldn’t be “injected as full litigants.” Instead, he said,

“I think the Judge should (and will) grant limited “amici” participation – something obviously the SEC does NOT want to see happen.”

Hogan, ergo, seemed to side with Ripple’s conditions for XRP Holders’ participation in the present case.

The popular attorney also took issue with the fact that the SEC has failed to recognize the value of the new insights and facts the movants might be able to bring to the said litigation.

What does the SEC’s latest response, the sheer tone and animosity of it, mean for the prospect of settlement, however? Well, according to the attorney, “it doesn’t change anything.”

Finally, Hogan observed,

“Lawyers are not supposed to make baseless accusations against opposing counsel yet, here we are…”

This is a telling statement to make, especially since something similar was implied by the intervenors’ latest memorandum of law against the SEC’s opposition. In his submission to the court, Deaton had claimed that he was being “unfairly targeted as an unhinged conspiracy theorist crusader.”


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Jibin George

Jibin is a news editor at AMBCrypto. With over three years of experience as a political writer, he primarily focuses on the political impact of crypto developments. A graduate in Law and International Relations, his writing is by and large focused on cryptocurrencies from the political and financial perspective. A Liverpool FC fan. YNWA

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Analysis

Matic & Loopring: Why these projects matter to Ethereum’s performance

With ETH’s price back in the $2900 range, there has been a lot of debate on the level of security Layer 2s provide, their long-term ROI, and the sustainability of their price rally. After crossing the $4000 level on May 12, the price dropped, several times and the scaling solutions’ have rallied. Consider the analogy,…

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Matic & Loopring: Why these projects matter to Ethereum’s performance

With ETH’s price back in the $2900 range, there has been a lot of debate on the level of security Layer 2s provide, their long-term ROI, and the sustainability of their price rally. After crossing the $4000 level on May 12, the price dropped, several times and the scaling solutions’ have rallied.

Consider the analogy, someone with $100 can save or store it in several ways as they would like. There is the option of storing it in a wallet, keeping it in a bank, or in the security of a vault. However, with Ethereum, a trader with $100 worth of ETH would have to use all ways at once – store in a wallet, bank and vault at once. Does that make it inefficient and unnecessary?

What L2 solutions do is that they offer the option of one way instead of many, making it efficient. These L2 solutions are projects like MATIC, Loopring, OMG. All three projects have offered high short-term ROI since the launch of ETH L2. In the case of MATIC, the number of transactions and the transaction volume have increased significantly since the launch.

The altcoin now ranks 14 in the top 25. The transaction volume for nearly all three projects has increased, on account of significantly high fees of settling transactions on the ETH network. According to data scientist @ASvanevik, MATIC has the largest inflow of stablecoins of any Ethereum address in the last 7 days. This signals increasing demand for MATIC, while the price rally extends beyond the 105% from last week.

In the case of Loopring based on the following data from Lunarcrush.com, the Galaxy Score Trend, a combined measure of health, quality and performance, is at 63, lower than the peak it hit the second week of May 2021. The social volume has dropped considerably and the demand across exchanges has dropped. It is anticipated that once the social volume recovers and trader sentiment is neutral, Loopring would offer high short-term ROI like other L2 scaling solutions.

L2 solutions are likely to remain relevant for a long time; as ETH transaction fees remain high, traders and ETH Maxis have been bullish about MATIC and Loopring. MATIC already offers side chains and plasma and has a roadmap to introduce optimistic and Zk rollups in the future which is likely to increase ease of use. In the war of L2 scaling solutions, ease of use is the key factor, after demand and ROI. Long-term ROI is anticipated to be high for ETH and scaling solutions alongside it.


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Ekta Mourya

Ekta is a full-time journalist at AMBCrypto and her specialization lies in spot markets. Currently pursuing her MBA, she is passionate about trading, fintech, and everything decentralized.

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Analysis

What’s next for XRP’s price following these court proceedings

The ongoing legal battle between the SEC and Ripple has been somewhat of a rollercoaster for XRP traders and HODLers. There is uncertainty in the price of the altcoin, as a result of this legal debacle. The SEC has argued from the beginning of this enforcement action that XRP is a security. The impact of…

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What’s next for XRP’s price following these court proceedings

The ongoing legal battle between the SEC and Ripple has been somewhat of a rollercoaster for XRP traders and HODLers. There is uncertainty in the price of the altcoin, as a result of this legal debacle. The SEC has argued from the beginning of this enforcement action that XRP is a security.

The impact of the recent updates is that XRP’s price is at $1.44, down nearly 5% in the last 24 hours. There has been an increase of nearly 50% in the trade volume in the last 24 hours. The altcoin’s price is nearly 62% below the ATH of the $3.84 level based on data coinmarketcap.com.

The social volume hit a peak several times, following updates from the SEC vs Ripple hearing. It has dropped to 16258 based on the above chart, following SEC’s argument that XRP holders are actually XRP investors. This is akin to an attack on XRP HODLers’ portfolio given the impact on the ROI in the short-term. (Ironically, the SEC’s motto is to “protect investors”)

HODLers vs Investors: What is the fate of XRP traders

XRP Short term ROI || Source: Messari

Based on the above chart, XRP traders have earned less than 15% ROI in the past 30 days and that makes it less profitable than most altcoins in top 10. Similarly, for HODLers who accumulated when the price was at $1.9 level, they are currently unprofitable. The volatility has nearly dropped, with a few spikes following updates from the hearing. At the same time, XRP’s correlation with BTC and ETH is above 80%. This has helped the altcoin’s price sustain at the $1.6 level against the selling pressure on spot exchanges.

In its latest filing, the response from SEC makes the hostile stance towards XRP traders clear. The updates in court proceedings have by no means safeguarded the interests of XRP traders. The short-term ROI is expected to drop further following updates.

The enforcement action brought by the SEC may have never been intended to protect or negatively impact XRP’s price, however, at a time when nearly every mid to small-capitalization altcoin is rallying this summer, XRP’s rangebound price action is largely a result of the SEC proceedings against Ripple.

XRP traders have responded to this action, by consistent demand across spot exchanges and the market capitalization is currently above $51 Billion, the altcoin ranks 7 and there are currently no signs of dropping below the top 10.


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Ekta Mourya

Ekta is a full-time journalist at AMBCrypto and her specialization lies in spot markets. Currently pursuing her MBA, she is passionate about trading, fintech, and everything decentralized.

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