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Ripple (XRP)

Ripple CTO Slams SEC’s Coinbase Crackdown: Incompetence Or Insider Protection?

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Ripple CTO, David Schwartz, has criticized the SEC’s actions against Coinbase, suggesting that they may be motivated by incompetence or a desire to protect insiders and early investors. It comes after Coinbase received a Wells notice from the SEC over its plans to launch a lending product.

Schwartz’s comments were in response to a tweet by CEO and co-founder of Lightspark, David Marcus, who praised Coinbase for playing by the rules and engaging with regulators. However, this led to a debate on whether Coinbase had indeed been playing by the rules, with some suggesting that they had listed unregulated securities on their exchange.

LexproofHQ’s CEO weighed in on the debate, stating that the Howey test is not simple as it applies to crypto, and even top securities lawyers don’t know how it applies to many tokens. He warned against falling for Gary Gensler’s parroting of this false line.

Schwartz then commented that the SEC’s actions might be motivated by a desire to protect insiders and early investors, which could result in retail investors bearing the brunt of the losses due to litigation.

Coinbase Vs. SEC: The Battle For Clarity In The Crypto Industry

Many top faces in the crypto industry also backed Coinbase against the SEC. Stuart Alderoty, Chief Legal Officer of Ripple, tweeted that the enemy of my enemy is my friend. 

Attorney Jeremy Hogan stated that the SEC is not an independent agency making rules based on the law but a political enforcement arm of the administration and its views, stating that only the courts can save us now. Founder of Crypto-Law.us, John E Deaton, called the SEC a disgrace.

Craig DeWitt, Founder of Supermojo, suggested that with the Wells notice against Coinbase and the chance of a big Ripple court win, XRP could become one of the few assets available for trading in the US.

The ongoing discussion regarding Coinbase’s compliance with regulations underscores the necessity for unambiguous guidelines within the cryptocurrency sector.

However, the absence of such clarity has created confusion and doubt, potentially resulting in adverse effects for investors and the industry as a whole. Therefore, regulatory bodies must establish transparent directives that facilitate legal operations and safeguard investor interests.

Related Reading | Coinbase Receives SEC Wells Notice; Calls For Clarity In Regulatory Environment

Ripple Gains A New Ally: Messari CEO Ryan Selkis Voices Support For XRP Ledger

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Blockchain payments firm Ripple Labs has gained a new ally in the form of Messari co-founder and CEO Ryan Selkis, who recently took to Twitter to express his support for the company. 

Despite having been critical of Ripple in the past, Selkis now believes that the XRP-SEC case should be won by Ripple and that the XRP Ledger should be given the opportunity to compete fairly on a global scale.

Ripple’s Potential: XRP Ledger’s PoA Algorithm and IOUs

In a tweet thread by Messari, it was shared that the demand for digital payment infrastructure is increasing, despite the external pressures being applied by U.S. regulatory authorities. 

According to the tweet, the XRP Ledger (XRPL), which Ripple supports, can provide this infrastructure for individuals and existing financial entities such as central banks.

One of the unique features of the XRPL that the Messari tweet highlighted is its use of a Proof-of-Association (PoA) consensus algorithm, which requires each node to set a list of trusted nodes (UNL) that it will rely on for consensus. 

All nodes on the XRPL run the same free, open-source software called “rippled.” Validators are nodes involved in reaching consensus and voting on improvement proposals, while stock nodes receive, relay, and process transactions. Nodes rely on their UNL to finalize the state.

The thread further elaborated that the XRPL’s Issued Currencies (IOUs) allow for the creation of multiple assets. While its Authorized Trust Lines enable issuers to choose which wallets can interact with their tokens. Additionally, the XRPL has a central limit order book, supporting low-liquidity IOUs.

Despite facing regulatory challenges, Ripple and the XRP Ledger are making progress. Additionally, with support from industry leaders like Selkis and others, the company is poised to continue making strides toward its goal of revolutionizing the world of finance.

Community Response To Selkis’s Support Of Ripple Labs

Ryan Selkis’ tweet in support of Ripple Labs and the XRP Ledger has garnered a lot of attention from community members. Many responded positively to Selkis’ observations, with one person saying that the XRPL is impressive for so many reasons and that digital assets should have a level playing field to compete with each other. They believe that true competition will drive innovation and help grow the space.

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Others expressed their appreciation for Selkis’ support, with one person saying they were glad to have him on their side. Another community member pointed out that there should be no sides and that it’s all of us versus the existing system.

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Many also acknowledged the potential of the XRPL, with one person applauding the thread and stating that it’s clear that the technology is good and deserves to compete. They expressed regret that Ripple was ridiculed in the beginning instead of being supported but were glad that things were changing.

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Bone ShibaSwap Skyrockets with 25% Surge In 24 Hours & 750% In Trading Volume

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The Shiba Inu ecosystem token, BONE, has emerged as one of the best-performing altcoins in the crypto market. The token, a relatively new player in the crypto world, has experienced a significant boost of 25% in the last 24 hours. 

The surge in price is even more impressive, considering that most of the market has been consolidating and struggling to find solid ground.

The impressive rise in the price of the token is coupled with an equally impressive boost in its trading volume, which has soared by 750% in the same period. 

Bone
Source: CoinMarketcap

InvestorsObserver Sentiment Score, a reliable indicator of the performance of cryptocurrency, has given Bone ShibaSwap a Bullish rating over the last five days based on volume and price movement.

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Source: InvestorsObserver

The rise in the value of the token has caught significant attention. According to CoinMarketCap data, the token is currently trading at $1.81, a considerable increase from its low of $1.39 just a day ago.

Moreover, the upward trend has been visible over the past week, with the token experiencing an almost 8% rise in value. The market cap of the token is also up by 26.06%.

BONE 1D graph coinmarketcap
Source: CoinMarketcap

Bone Price Driving Factor

It appears that the reason behind this unprecedented surge can be attributed to the recent announcement by BoneArmy regarding the launch of SHIBARIUM Public Beta, which is set to take place this week.

As BoneArmy revealed the exciting news on their official social media channels, crypto enthusiasts and token lovers worldwide eagerly awaited further details on accessing the beta website. 

One tweet by the token’s official Twitter account read:

Finally, all the things I said about $Bone in these two years have been proven. How long have you been following me? I want to know who are the old followers.

The excitement surrounding the upcoming launch of SHIBARIUM has caused Bone ShibaSwap to make a bold statement, declaring that the whole crypto world will be lining up to buy the token. The token’s lovers expressed their agreement, with some even stating that it would hit $50 and become the next BTC.

However, some skeptics pointed out that another token, ZinuToken, had already launched its mainetz before SHIBARIUM, giving them a potential advantage over Shiba Inu’s ecosystem token. 

Despite this, BoneArmy’s announcement has caused a stir in the crypto community, and it remains to be seen how the launch of SHIBARIUM will impact the future of Bone.

Here’s What Ripple CTO Has To Say About ‘The Movie Line’

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Ripple hits the headlines yet again. A logline—a condensed form of the emotional and logical core of a potential movie film about a cryptocurrency company—written by ChatGPT at the request of Ripple CTO David Schwartz has been made public. Schwartz condensed the entire gist into a single statement with the aid of artificial intelligence.

The blockchain creator has named the movie “Ripple, The Movie,” and it contains the following basic plot,

“When a scrappy financial startup takes on a web of corruption and betrayal to bring instant payments to the masses, they learn that the cost of disrupting the status quo is higher than they could  ever have imagined, forcing them to decide between their vision and their survival.”

As you can see, “Ripple, The Movie” revolves around the tale of the business’ legal conflict with the SEC, and more particularly, ETHGate. According to ETHGate, which was first reported by U.Today, organizations connected to Ethereum have to resort to working with regulators like the SEC to thwart rivals. As a result, XRP is thought to have lost ground against ETH in the cryptocurrency market.

The logline does not make it obvious that ChatGPT refers to Ripple as a scruffy start-up. According to the most recent news and reports, the company is performing well and hardly qualifies as that. In this sense, it’s possible that the artificial intelligence aimed to add drama to the narrative and portray Ripple as a sort of David taking on the corrupted regulatory Goliath.

Ripple’s XRP Shows Bullish Signs

In March 2023, Ripple’s native token is trading sideways and has spent the previous ten days around the $0.37 level. XRP is attempting to climb over its $0.40 resistance level but is failing to do so. Given that investor shorting of XRP has dropped to an all-time low, according to statistics from the Bitfinex platform, the cryptocurrency may soon reach $0.40.

Mr. Huber, a proponent of cryptocurrencies and XRP, tweeted that short positions in XRP/USD had reached an all-time low. Want some encouraging news? For the first time ever since they started, XRP shorts just reached an all-time low,” he tweeted.

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Source

The new information shows that XRP may be able to increase in value without being constrained by “shorting,” which might cause its price to fall. The information, however, is limited to the Bitfinex bitcoin trading platform, making it unable to verify it on other exchanges.


400M XRP Released By Ripple As Monthly Escrow Process

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Previously, XRP had seen AI establish its price estimate for March 1, 2023, influenced by what was viewed as an optimistic attitude. To predict how the digital assets would perform at the beginning of the following month, PricePredictions has deployed machine learning algorithms.

In perspective, as March moves beyond February, San Francisco-based crypto powerhouse Ripple Labs released another installment of its escrow funds, releasing a staggering billion of the tokens. The token’s EscrowBot has observed four transactions during the last 10 hours, each carrying two 400,000,000 and two 100,000,000 XRP. A minor increase of roughly 2.5% has been seen in the price of the token, the sixth-largest cryptocurrency, over the past day.

The cryptocurrency behemoth Ripple, which is now going through a difficult time in court against the SEC, conducted another planned release of cryptocurrency on March 1 by removing a billion of Ripple’s tokens from escrow accounts. According to the current XRP/USD conversion rate, this amount of the token is equal to $383,946,000.

On the first of every month, Ripple has been regularly removing one billion of these coins. The XRParcade platform’s data reveals that Ripple has been carrying out this activity for 62 months now. This does not imply that 62 billion of the token have been moved out to be dumped on the market, though.

Total XRP Released: Details

Since the majority of the token that is withdrawn each month is typically held back in escrow, the actual number of the altcoin’s tokens that have been released is far lower. The aforementioned XRP-focused source claims that 50,100,000,000 of the token has been added back from the 62 billion that Ripple had unlocked since January 2018. The firm releases one billion each time and then transfers 700 million to 800 million of the tokens back to escrow. The corporation sells the remaining unlocked funds to pay for its operating expenses or to transmit the token to its ODL corridors or clients.

Consequently, following withdrawals over the previous five years, a total of 50,100,000,000 XRP has thus far been returned to escrow. Ripple still has 43,100,000,000 of the tokens locked as of right now.

XRP: Web3 Domain Provider Unstoppable Domain Adds Support For XRP Toolkit

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Unstoppable Domain, a provider of Web3 domains, recently announced the addition of support for the XRP Toolkit, a tool for managing cryptocurrency and conducting trade on the XRP Ledger’s decentralized exchange.

Towo Labs’ XRP Toolkit makes it easier to securely interface with and manage cryptographic assets on the XRP Ledger. Users can transmit, receive, and trade any asset discovered on the decentralized network using this client-side interface without incurring any commission fees. Additionally, users of the Toolkit are participating in peer-to-peer trading, with all transactions being settled through the thousands of nodes, independently maintained XRP Ledger network. To discourage spam, only a small transaction fee is levied. Unstoppable Domains pointed out that the Toolkit offers capabilities like trust lines and escrow.

Since it is creating an ecosystem of domains that are safely kept as non-fungible tokens directly on a blockchain ledger, the San Francisco-based Web3 domain supplier plays a special position in the decentralized web. Similar to a conventional domain, the.crypto extension is supported by blockchain technology. Unstoppable Domains uses this invention to enable users to register domain names that cannot be taken or censored by any government or group.

Additionally, it links these domains directly to decentralized programs like MakerDAO and cryptocurrency wallets, making it simpler for users to transact with cryptocurrencies without having to remember complicated wallet addresses. The decentralized nature of the DNS (Domain Name System) makes it resistant to manipulation and censorship by large, strong groups because no single entity has authority over the entire platform.

XRP In The Hands Of NASDAQ Index

There were no new developments in the SEC v. Ripple case to guide the discussion on Monday. Due to a lack of updates, the NASDAQ Index and the larger crypto market now control XRP.

On Monday, hopes of a Fed pivot were dashed as investors’ apprehension over a hawkish news conference by Fed Chair Powell sent the NASDAQ Index and the cryptocurrency market into the red. While US inflation has moderated, it is still significantly above the Fed’s 2% target. Powell has plenty of flexibility to continue pushing higher as the US unemployment rate is only 3.5% as opposed to the aim of 5%.

The wait-and-see approach for XRP might potentially put investor fortitude to the test. Even though court decisions could be made at any time, Ripple CEO Brad Garlinghouse anticipates a resolution in the first half of the year, which would put investors in limbo in the foreseeable future.

Investors should keep an eye on today’s developments in the SEC v. Ripple case. However, if there were no updates, the larger crypto market would be left to give guidance. Updates on FTX and Genesis as well as regulatory chitchat will be of interest. The NASDAQ Index and US economic indicators will impact the afternoon session.

XRP Lags Behind Bitcoin: Ripple’s Former Director Explains Why

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Ripple’s former Director of Developer Relations, Matt Hamilton, recently weighed in on the ongoing debate about the value of XRP and its lack of popularity compared to Bitcoin. The conversation began when analyst Molly Elmore asked on Twitter if the value of XRP is different from other tokens on the XRPL:

That depends on the definition of “value”. This question is important to the idea of “ALL THE MONEY” moving to the blockchain.

Hamilton responded by stating that a tokenized asset does not have the same intrinsic value as the native asset on a blockchain. He explained that while Ripple’s token and Bitcoin are both just codes, the token has no counterparty, and its value is not derived from any underlying external asset, unlike tokenized gold or oil.

Elmore countered that the intrinsic value might be the same, but the perceived or derived value may be very different. Hamilton agreed, stating that the level at which the intrinsic value is the same level at which one might say Ripple’s token and BTC are the same.

XRP Development & Adoption Challenges

Another Twitter user, Nosmo King, chimed in by asking if Hamilton had argued for years that XRP and BTC were effectively the same. Hamilton clarified that they are not the same. 

King then posited that Ripple’s token was created by Bitcoin developers in an attempt to make a better Bitcoin without mining but that XRP had never secured a product market fit.

Hamilton acknowledged that theRipple’s token has not been as successful as Bitcoin, citing Bitcoin’s first mover advantage, the XRP Ledger being ahead of its time, and a lack of understanding about DEXs and tokenization in 2012. 

He also mentioned that an early paid FUD campaign from Bitcoiners against XRP and the FinCEN case against Ripple also slowed down XRP’s growth.

Despite these challenges, Hamilton remains optimistic about the future of Ripple’s token and its potential to revolutionize the way value is transferred. 

He believes that as the world becomes increasingly digital, the demand for a fast, efficient, and decentralized means of transfer will only continue to grow, making Ripple’s token a valuable asset for the future.

Related Reading | Bitcoin (BTC) Market Sentiment Flips: Risk Reversals Show Bullish Shift

Ripple Supreme Court Showdown: Pro-Crypto Lawyer Weighs in On SEC Lawsuit & Grayscale ETF Conversion

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Pro-crypto lawyer John Deaton took to Twitter to weigh in on the ongoing legal battle between Grayscale and the SEC over the conversion of Grayscale Bitcoin Trust (GBTC) into a Bitcoin exchange-traded fund (ETF). Deaton also commented on the SEC’s lawsuit against Ripple Labs, suggesting that it could also make its way to the U.S. Supreme Court.

Deaton stated that he believes the odds of a Grayscale win before the D.C. Circuit are 50/50 and a win before the Supreme Court are 75-80%. He argued that under the law, the SEC’s denial of a spot BTC ETF while allowing both a futures ETF and a short ETF is arbitrary and capricious.

He also commented on the SEC’s case against Ripple Labs, stating that he has “zero doubt that the current makeup of the U.S. Supreme Court will rule in favor of Ripple if it goes that far.” Deaton argues that the SEC went too far in its allegations against Ripple and that the case rests on “demonstrably false premises.”

Dave Weisberger, CEO of CoinRoutes, also weighed in on the discussion, stating that the SEC’s case is based on false premises and ignores precedent set by approved gold spot ETFs, while the Bitcoin spot is more transparent and liquid. He also argued that the availability of GBTC for purchase in brokerage accounts harms investors directly, against the SEC’s mandate.

Latest Update On Ripple Lawsuit

In a recent development in the ongoing legal battle between Ripple and the SEC, an investment banker declarant, who is an employee of an SEC-regulated entity, has filed a response to Ripple’s opposition to an earlier motion to keep his name, position, and employer private. 

The response, which was submitted by the investment banker’s legal representatives, points out that the declarant submitted his statement to the SEC “voluntarily,” but in reality, the options presented to him were to provide a declaration or to testify. 

The investment banker’s firm is an SEC-registered broker-dealer, and, as such, the declarant had no choice but to comply with the request from the SEC. The document, which was attached to James K. Filan’s tweet, stated:

Where a witness’s only options are to provide a declaration or to testify, there is no truly voluntary choice to be made.

Related Reading | Bitcoin (BTC) Market Sentiment Flips: Risk Reversals Show Bullish Shift

Bithumb’s XRP Power Play: Over 260 Million Coins Transferred Amid Controversy

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In a stunning display of crypto-currency prowess, anonymous power players known as “whales” have made massive moves in the XRP market. 

According to data from Whale Alert, these whales have transferred a staggering 260 million XRP in a matter of days. The largest transfer was reportedly made by the Bithumb exchange, whose owner is currently facing legal troubles.

As reported by TronWeekly, The owner of Bithumb, South Korea’s second-largest cryptocurrency exchange, has been accused of manipulating the stock prices of affiliated companies, and an arrest warrant has been issued by prosecutors in Seoul. 

The inquiry is examining claims of financial misconduct by leaders of Bithumb, with a focus on Chairman and owner Kang Jong-hyun, who is believed to have manipulated stock prices through convertible bond issuance.

This sudden surge in the XRP movement has many in the crypto community speculating about the motives behind these transactions. Some believe that the whales may be attempting to manipulate the market, while others see it as a sign of growing interest and invested in the cryptocurrency.

Regardless of the reasons behind the transfers, it is clear that the cryptocurrency market is still very much in its infancy and subject to significant fluctuations. 

Whale Alert: Latest XRP Transfer  

According to the latest data, the 160,000,000 XRP transferred was worth $65 million, which is a substantial amount of money. These type of movements of cryptocurrency always attract attention and makes people question the purpose of these transactions. 

Additionally, a massive amount of XRP was also transferred between several prominent cryptocurrency exchanges. According to blockchain records, 39,500,000 tokens, worth a staggering $16 million, were transferred from Bitso to an unknown wallet.

In a seemingly coordinated move, 30,000,000 XRP, worth $12 million, was then transferred from that same unknown wallet back to Bitso. And in yet another surprising twist, 33,000,000 XRP, valued at $13 million, was transferred from that same unknown wallet to Bitstamp.

It remains to be seen how these recent developments will impact the XRP market and the crypto industry as a whole, but one thing is for certain, the crypto space is always full of surprises, and the anonymous whales are always making big moves, leaving the rest of us to speculate on their intentions.

Related Reading | Institutions Driving 85% Of Bitcoin Buying, Signals New Bull Market – Matrixport Report

Ripple Lawyer Challenges SEC’s Classification of XRP as Security, Citing Government Agencies’ Statements

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In a recent Twitter thread, pro-Ripple lawyer John Deaton presented a strong case arguing that the US Securities and Exchange Commission (SEC) is wrong in tagging XRP coin as a security. 

Deaton challenges the SEC’s claim by referencing statements from Bill Hinman, Director of the Division of Corporation Finance at the SEC, who said in 2018 that a digital asset is more likely to be considered a security if it is “sold as part of an investment – to non-users – by promoters.” 

Deaton argues that this does not apply to XRP holders, many of whom acquired the coin to establish a TrustLine with the XRPLedger for value transfer or to pay salaries through BitPay and other vendors.

Deaton also points to the SEC’s own framework for digital assets, which states that crypto is unlikely to satisfy the Howey test (which determines if an asset is a security) if “it can immediately be used to make payments in a wide variety of contexts, or acts as a substitute for real (or fiat) currency.”

Ripple XRP And Other Government Agencies

The lawyer goes on to highlight statements from other government agencies, such as the US Government Accountability Office (USGAO) and FinCEN, that have classified XRP as a virtual currency.

He also references a 2015 settlement between Ripple and FinCEN & the DOJ, which forced Ripple to comply with banking laws rather than securities laws and required the company to hire an independent third-party auditor to provide the government with annual audits of all XRP sales for five years.

Deaton argues that the SEC’s approach to crypto has been inconsistent and contradictory, referencing the fact that the SEC staff were allowed to own and trade XRP until April 2019. 

The agency took no action when MoneyGram filed a disclosure with the SEC in 2019, informing them that Ripple was going to be transferring XRP to them for use in their cross-border payments business. 

He also suggests that there is more non-public information that will further support Ripple’s case. John Deaton said:

What I’ve discussed above is public. It doesn’t take into consideration the non-public information. Now, wait until we see the Hinman emails and drafts of the speech.

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