The month of August has been rough for Ripple. First, a group of investors filed an amended case contending that Ripple is an unregulated security. Then, a crypto influencer filed a petition against the company for dumping XRP worth billions and manipulating its price. Ripple’s CEO recently took to Twitter and broke his silence on both the issues.
XRP is not a Security: Ripple CEO Brad Garlinghouse
On August 5, a group of investors had filed a lawsuit against Ripple claiming that the company’s tokens, XRP, are unregistered securities under the guidance provided by the Securities and Exchange Commission (SEC). They cited the SEC’s “Framework for ‘Investment Contract’ Analysis of Digital Assets” while filing their claim.
Ripple CEO Brad Garlinghouse has finally broken his silence on the issue. He took to Twitter on August 28 and said that the SEC guidance was not a rule or regulation, and it’s clear that XRP is not a security as countries including the UK have already said so.
“XRP sales are about helping expand XRP’s utility”
Another controversy surrounding Ripple is the alleged XRP dumping which is preventing growth in the price of the currency. A crypto influencer, Crypto Bitlord has started a petition on change.org to stop the price manipulation. The petition needs 10,000 signatures, out of which it has already received about 2500. Also, XRP’s alleged price manipulation has been all over the news since then.
Garlinghouse has also responded to this controversy in his tweets saying that the XRP sales are about helping expand XRP’s utility. According to him, the sales are contributing to “building RippleNet & supporting other biz building w/XRP ie Dharma & Forte”. Reportedly, the company has been decreasing XRP sales by volume quarter over quarter and owing to that, the inflation rate of XRP circulating supply has been lower than that of the top two cryptocurrencies, BTC and ETH.
Garlinghouse also pointed that Ripple continues to set industry standards in reporting and transparency. He cited the Q2 2019 XRP markets report to substantiate his point. The report includes Ripple’s Q2 highlights and developments in financial terms, quarterly programmatic and institutional strategy and sales, XRP-related announcements and new partnerships. According to the report, XRP’s global volume has grown from $53.85 Bn in Q1 2019 to $159.57 Bn in Q2 2019.
Mixed Reactions from the Community
The community has displayed mixed reactions to Garlinghouse’s attempts at dispelling FUD around XRP. Many users have thanked him for clearing the FUD.
However, there are others who are not convinced with Garlinghouse’s explanation. A Twitter user pointed to the fact that all the other top cryptocurrencies in the top 10 bracket had shown an upward movement in 2019 and XRP was the only cryptocurrency which had declined. It is to be noted that Ripple is now trading at just a fraction of its all-time high of $3.84 USD in January 2018.
At press time, XRP is trading at $0.26, and has a market capitalization of $11,446,326,581 according to CoinMarketCap.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.