XRP whales are on an accumulation spree at a discount which might play a postive role in the asset’s price movement. On-chain analystics platform Santiment noted that the token finished at the top in late September and early October, momentarily decoupling from the rest of the altcoins.
But the overall price downturn in the crypto market was further excerbated by the Sam Bankman-Fried FTX’s collapse. Here Santiment made an interesting observation.
In the blog, the data platform highlighted XRP whale addresses that are holding 100,000 to 10,000,000 tokens have swiftly increased their holdings in the ensuing weeks.
Santiment wrote, “It wouldn’t be terribly surprising for XRP to have another run in it, considering the increase.”
The token is in the limelight after the prolonged battle between the blockchain firm Ripple and the SEC is headed for a final outcome.
The most likely result of the XRP litigation, according to a legal expert in the field of cryptocurrencies, is a complete and utter triumph for Ripple over the U.S. Securities and Exchange Commission [SEC].
The SEC sued Ripple in late 2020, alleging that the payments firm sold the crypto asset XRP as an unregistered security.
Attorney Jeremy Hogan expressed confidence that Ripple would emerge victorious at summary judgment as he believes XRP was not sold as a security.
XRP Lawsuit: Ripple To Win Against SEC, Expert Cite 3 Reason
According to Hogan, there are two bases for this outcome. The crypto legal expert says the first basis is that Ripple had no legal obligation to buyers of the tokens after the sale took place.
Hogan cited an amicus brief filed by crypto investment firm Paradigm Operations to support his theory.
Hogan emphasized that the law requires an “investment contract” and not a “sales contract.” The lawyer noted that Ripple sold XRP without any legal promise to do anything further, which is the sale of an asset and not a security.
Next, Hogan focused on the second prong of the Howey test, which states that an investment contract exists if there is a common enterprise.
According to the legal expert, the SEC has three major issues in this arena.
First, he questioned how any purchaser would relied on Ripple to increase XRP’s price when Ripple had no post-sale obligations to them. “It’s like buying a Tesla and then suing Elon Musk when it fails to increase in value…”
The SEC’s second issue is that Ripple, through lawyer John Deaton, has submitted hundreds of statements from actual XRP holders, many of whom had no knowledge of Ripple at the time they purchased the asset.
And third is SEC’s own expert witness has agreed that the price of XRP for the most part and especially since 2018 moved based on the crypto market, and not with any decision that Ripple made.