SEC Charges Ripple With Selling $1.3 Billion In Unregistered Securities
You probably heard the news, especially if you got a Twitter account but in case you missed it i am here for you as always! For around a day or so rumors spread that Ripple will get chargers.
Well, a couple of hours ago SEC (Securities and Exchange Commission) charged Ripple with Selling $1.3 Billion In Unregistered digital asset
Securities.
According to the SEC’s complaint, Ripple, its cofounder Christian Larsen and CEO Bradley Garlinghouse gathered capital to finance their business through an unregistered public offering of XRP tokens beginning in 2013. It also says that Larsen and Garlinghouse carried out personal unregistered sales of XRP totaling roughly $600 million.
"We allege that Ripple, Larsen and Garlinghouse failed to register their ongoing offer and sale of billions of XRP to retail investors, which deprived potential purchasers of adequate disclosures about XRP and Ripple's business and other important long-standing protections that are fundamental to our robust public market system,” said Stephanie Avakian, director of the SEC's enforcement division on Tuesday.
Read the official government release here
Ofc Ripple replied that they gonna fight back and that isn't only their fight but a fight all of us into crypto should give together. We gonna take this a step further though but before doing so let's check the consequences on Ripple's price!
So if i remember correctly even 12 hours ago ripple had the 3d place under Etherium but now moved on the 4th place. Also, it's down by 17% as you can see below.
What the SEC Attack on Ripple may Indicate
Note that whatever i am gonna write from now on and till the end of the posts are assumptions of mine. Those assumptions are also from different perspectives, you will notice it as well!
The Beginning of The SEC Attacks
One assumption is that Ripple was only the beginning. That means that a series of attacks will follow on other popular cryptos and thus we gonna see again a red see on coinmarketcap/coingecko.
Also, that may mean stricter regulation around cryptos that will make our lives a lot more difficult. That is the worst-case scenario that i have in my mind though.
Centralized Ripple VS Decentralized Cryptos
Another assumption is something i keep on hearing since the birth of Ripple. Ripple is backed by many banks and banks are the number 1 example of a centralized system. In other words, Ripple was considered a centralized coin.
And for a "centralized coin" to get charged by SEC can only mean nothing for other decentralized cryptos. Instead, they will accumulate some of the Ripple holders, thus increasing their values faster!
Winning Over Sec
Finally, my last assumption once again from a different perspective is that if Ripple wins the battle with SEC, then cryptos will not only gain more popularity but in people's mind they will be considered safer and not a scam!
What Do you think about this situation? :P
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I see this as the end of the SEC's clean-up period: Ripple is the big capstone. They already prosecuted Telegram and Kik successfully, as well as a few smaller projects, they gave EOS a sweet deal and decided to tolerate Ethereum. The market now knows how far you can go with funding through tokens. The evidence in the complaint against Ripple is convincing. I was already convinced that XRP is a security before I read about the legal memos from 2012 and the market manipulation in this complaint.
For other altcoins, bagholders should be nervous when they see how fast a coin can drop when it faces being delisted by exchanges and sold by investment funds. Here, the danger comes from other US government agencies that attack crypto because they don't like private currencies. At the moment, a reporting rule is being pushed through. And stablecoins might get caught up in legislation limiting Facebook's plans to create their own coin.
ahh i didn't know about telegram. what was the result cause i see it's still around and bigtime! Regarding the other altcoins what do you think sec will bring?
Also sorry for the late reply, i tend to gather comments/replies together and answer to all of them at a certain day due to lack of time!
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No problem, I do the same. I guess Telegram is popular enough to find other sources of funding, and the owners made money from selling Vkontakte, but they had to return $1.2 billion to Investors and pay a $18.5 million fine.
ahh i see thanks a lot for the info
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