As the US Securities and Exchange Commission Vs Ripple lawsuit continues, XRP is dealing with regular emerging FUD in the market. These narratives surrounding XRP within the crypto community have proven to be demotivating for the crypto.
XRP faces huge FUD
In a post, Crypto friendly lawyer suggested three different kinds of sentiment making rounds in the industry. This includes claims about XRP price suppression by Ripple, lack of legal clarity, and concerns about the proposed Ripple’s stablecoin affecting demand for their native crypto.
Bill Morgan mentioned that there are legal clarity issues take get divided into two main forms of FUD. The first is linked with certain sales that could retroactively classify XRP as a security. This comes despite the court’s finding that XRP itself is not a security. He added that this theory lacks legal precedent and still continues to circulate despite being debunked.
However, the second form of FUD casts doubt on the court’s findings even though the SEC has indicated it will not appeal the decision. This disbelief is still haunting Ripple’s crypto despite the commission’s admission of the court’s ruling.
He highlighted that the recent decision made by Judge Failla to not dismiss the SEC case against Coinbase is being linked with the Ripple vs SEC case.
Will Coinbase case help them?
It is important to note that the latest ruling in the case suggests a partial win for both parties. The Judge while dismissing Coinbase’s motion found as plausible the SEC’s argument that secondary market sales of tokens such as SOL were investment contracts.
The expert mentioned that the merits of the SEC against Solana seem much stronger than it was against Ripple. Meanwhile, he did not think that the commission would try to overturn against exchange on secondary sales of the 13 tokens being investment contracts.
Ripple’s XRP is dealing with immense selling pressure which is clearly evident from the trading chart. Its price is down by around 2% on the year to date (YTD) basis, while, other major cryptos like Bitcoin (BTC) and Ethereum (ETH) are up by 68% and 55% respectively.
XRP saw gains of around 2% in the last 24 hours. It is trading at an average price of $0.60, at the press time. Its 24 hour trading volume is up by 42% to stand at $1.2 billion. It is still holding a market cap of $33.3 billion.
