Ripples, or XRP, might be the third most valuable cryptocurrency but it’s currently valued a long way from its peak. It hit the peak of USD 2.28 at the end of 2017 but is currently hovering under 30 cents.
While the Ripple company created it, its use of a shared ledger means it can function independently. This could turn out to be a key feature based on some of the latest Ripple news. Let’s look at the reason why.
Dumping and Community Takeover
The XRP community has recently accused the Ripple Company of selling off XRP to fund investments. It was revealed in July that quarter-to-quarter sales increased by roughly 48%.
The community is concerned that this dumping of XRP is helping keep the value low. They’re threatening a takeover of the coin if the Ripple Company continues selling off their holdings or forking it to create a new crypto outside of the founders’ control.
Ripple claims that XRP uses a decentralized network, which would make a community takeover possible. It remains to be seen if this is, in fact, the case but a petition to stop Ripple from dumping XRP currently has nearly 4,000 signatures so there is a good chance we’ll find out.
The Ripple Company has the resources to move XRP forward so hopefully, they will be able to find common ground with the community.
Is XRP a Security?
Another ongoing debate over XRP is whether it should be considered a security. Regulators haven’t reached a consensus on how to treat it. The SEC, in particular, has been hesitant to weigh in on cryptocurrency in general, although it looks like that may be changing in the near future.
There is a pending class-action lawsuit against Ripple Foundation and the CEO Bradley Garlinghouse. It claims that XRP is an unregistered security and was recently updated to also claim a violation of California security laws about advertising and promotion.
The lead plaintiff in the case, Bradley Sostak, claims he lost $118,100 in his own investments while others in the class-action are claiming various other amounts.
The lawsuit was originally filed in May 2018 but was updated recently to include the claims about XRP’s status as an unregistered security as well as the complaints about California law.
Keep Your Eyes Open for the Latest Ripple News
Ripple is a high-profile cryptocurrency and the latest Ripple news is going to keep it top-of-mind for many investors. It’s not clear how the lawsuit is going to turn out or whether the threatened community takeover will put enough pressure on the founders to make a significant impact on its value.
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