The crypto community is currently embroiled in a debate over the right for Ripple to sell XRP tokens, sparked by a recent exchange between XRP advocate Bill Morgan and a crypto analyst known as “Darkhorse” on social media platform X.
This discussion delves into the legal complexities and market implications of Ripple’s actions concerning XRP sales.
https://twitter.com/Belisarius2020/status/1747352391551467587?ref_src=twsrc%5Etfw” target=”_blank” rel=”noopener nofollow
Bill Morgan, a staunch defender of XRP, argued that Ripple has no legal constraints on “selling its XRP tokens except in the context of institutional sales.”
This assertion was in response to a crypto analyst, Darkhorse’s reference to a ruling by Judge Analisa Torres in July 2023, which, according to the analyst, did not permit Ripple to sell XRP.
Morgan maintained that Ripple is legally allowed to sell its XRP holdings, clarifying that the company’s sales should not be viewed as investment contracts under the United States Securities law.
Morgan further noted that nothing is “stopping Ripple from selling its XRP.” “The issue is whether in the US it needs to register its sales and offers of XRP with the [Securities and Exchange Commission] SEC.”
After Judge Torres ‘ decision, another user on X highlighted a significant point regarding Ripple’s XRP sales. Based on the judge’s reasoning, these sales might “now be considered securities transactions.”
This change in classification, the user explained, is because Ripple’s involvement with XRP is now publicly acknowledged, which could lead to expectations of value increase due to the payment company’s activities.
Previously, such sales weren’t classified as securities transactions due to a “lack of evidence” that retail buyers knew about Ripple’s role with XRP. However, this has changed post-Judge Torres’ decision, making Ripple’s involvement a publicly recognized fact.
Responding to this, Morgan suggested that despite this public awareness, the past five years’ performance of XRP’s price indicates that expecting profits from Ripple’s efforts might not be “reasonable.” The XRP advocate further implied that those who bought XRP after the July 13th decision with such expectations might be “irrational or need help.”
https://twitter.com/Belisarius2020/status/1747458178344976584?ref_src=twsrc%5Etfw” target=”_blank” rel=”noopener nofollow
Notably, the debate comes on the heels of Ripple’s recent transfer of 80 million XRP tokens, valued at approximately $46.18 million, to an undisclosed wallet. This transaction, reported by blockchain tracking service Whale Alert, has ignited speculation in the XRP community.
Amid these developments, XRP’s market performance has seen fluctuations. The asset experienced a 1.5% decline in the past 24 hours, dropping its price to $0.566. However, over the past week, XRP has shown resilience, recording a 2.6% increase. The trading volume for XRP also saw a dip, falling from over $1 billion last Wednesday to $827 million in the last 24 hours.
Featured image from Unsplash, Chart from TradingView
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Author: coinmaker
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