Ripple is presently in cold waters, and they would need to act fast before something tragic regarding their native digital asset, XRP, happens in the next few days. News broke around earlier that rumors that the United States Securities and Exchange Commission was making moves to sanction Ripple.
The United States SEC was said to have finally agreed to treat the digital asset as securities, a major factor behind the proposed lawsuit. In fact, until yesterday evening, the United States Securities and Exchange Commission officially slammed the lawsuit on the remittance payment company sparking outrage from analysts and experts in the market.
Willy Woo slams SEC’s lawsuit
According to the details of the lawsuit filed by the Securities and Exchange Commission, Ripple conducted an initial coin offering in securities of about $1.3 billion without giving investors full details about XRP. With the latest development, experts and analysts across the country have shown their displeasure and have begun to advise holders of the token on how to take their loss. Some went ahead to create a CNBC parody account, something that sent the whole publication trending.
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Even though most of the things said by the parody account are untrue, the real Ripple chief is presently working around the clock on ways to battle this latest lawsuit. Crypto chiefs worldwide are slamming the United States Securities and Exchange Commission’s decision to see XRP as securities rather than a cryptocurrency.
Taking to Twitter, Bitcoin analyst Willy Woo began another bout of tribalism related offenses in the crypto industry. Willy Woo noted that Ripple has always done what is required of them and has been successful at it, but the SEC is just looking for things that are not there.
Previous proponents are removing ties linking them with XRP
Also reacting to the incident, Jake Chervinsky, the legal counsel for Compound Finance, also said that the lawsuit was ideally a very tragic one for Ripple but mentioned that it was not the worst thing for the payment company. He said the worst that could have happened was I’d the SEC charged them with securities fraud. Furthermore, Chervinsky noted that if XRP is classified as securities, then it is utterly useless and charging them for violations is bad.
As it stands now, exchanges are currently delisting XRP, with Brady exchange leading the charge. However, what is surprising is that in situations like this, bigger exchanges are always the first to pull the plug on assets but have not done them in Ripple’s case.
A new twist has also emerged concerning previous proponents of the project as most of them are now removing all ties linking them to XRP, hence deleting their old tweets that promoted the digital asset. In a defensive tweet, Ripple slammed Bitcoin and Ethereum, noting that the Chinese were controlling them. The sell-off has seen XRP enter a bullish run, with the digital asset losing around 20% in the last 24 hours.