- This decline follows a rise of over 80% after a positive verdict in the Ripple v. SEC case.
- The cryptocurrency is once again below Binance’s BNB as per CMC.
The fifth biggest cryptocurrency, XRP, is down 8% in the last 24 hours and is now around $0.70. According to CMC statistics, the cryptocurrency is once again below Binance’s BNB. It currently sits at the 5th position on the top crypto by market cap list on CMC.
This decline follows a rise of over 80% after a positive verdict in the Ripple v. SEC case led to big U.S. exchanges such as Coinbase and Bitstamp relisting XRP. Fox Business’ Charles Gasparino tweeted about the drop, citing unanswered questions regarding the scope of Ripple’s triumph in court as the reason.
Despite being a devastating reality, the pro-Ripple camp has mostly disregarded the court’s judgment that $700 million in XRP sales were unlawful and required to be refunded.
SEC Expected to Appeal
John Reed Stark, a legal expert, has analyzed the court’s ruling and found many possible problems. According to Stark, the judgment makes it harder to distinguish between private sales of XRP to approved investors and sales of the tokens via programmatic means on crypto-trading platforms.
Moreover, he claims this strategy might create a new category of “quasi-securities” whose characteristics vary based on the investor’s level of expertise. Stark notes that the verdict raises concerns about whether token sales to sophisticated investors like VC firms can be considered securities or not.
The analyst ends by saying the SEC would likely appeal the Ripple case to the 2nd Circuit and that the District Court’s findings pertaining to programmatic and other sales will be reversed.
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