One billion XRP tokens have been withdrawn by the Ripple DLT from its escrow account on July 1. These releases of massive XRP amounts have been programmed to take place on the first day of each month. This withdrawal comes amidst Ripple’s legal battle against the U.S Securities and Exchange Commission (SEC).
What you should know
- The SEC has been in a legal battle with Ripple and two of its executives over a case of conducting a $1.3 billion unregistered securities offering.
- The two executives in question are Ripple’s CEO, Bradley Garlinghouse and Ripple’s co-founder and executive chairman of its board, Christian Larsen.
- Yesterday, the blockchain giant unlocked another billion of the cryptocurrencies affiliated with it. That is equal to over $704 million in fiat.
- Ripple releases 1,000,000,000 XRP in two transfers of 500 million each first of every month.
- Partnership agreements between Ripple and banks, payment companies and other institutions (over 350 of them) often require them to utilize Ripple’s payment network RippleNet and the XRP token as well.
- In the past, many in the cryptocurrency community blamed Ripple for preventing the XRP price from rising by these regular releases of 1 billion XRP. A petition on the change.org portal was launched to demand that Ripple stopped throwing large amounts of XRP into the market.
READ: Ripple seeks documents from offshore exchanges to aid case against SEC
What this means
Even with the current lawsuit the company is facing, the company continues to run its regular day to day activities and meets up with its objectives and obligations. Ripple has been winning its case against the SEC so far. In its latest win, the judge denied the SEC access to Ripple’s legal advice.
In the meantime, the 7th largest cryptocurrency by market capitalization has not recovered from the fall below the $1 level and is exchanging hands at $0.63, down 4.14% as of the time of this writing.
XRP stands firm, investors wait on Ripple’s legal outcome
Investors are anxiously waiting for the legal outcome filed against Ripple, creators of XRP, as the digital asset, recorded decent gains amid recent price market correction prevailing at the crypto-verse
Investors are holding firm on reports that revealed Christian Larsen, the Chairman of Ripple, has joined company CEO Brad Garlinghouse in passing a motion to dismiss the charges filed by the U.S. Securities and Exchange Commission.
In a court letter filed recently, the Chairman of Ripple’s attorneys provided facts detailing their reasons on why the legal case against the Ripple executive should be struck.
According to the letter, the SEC has not been able to prove its evidence that the Ripple top executives knowingly or recklessly provided substantial assistance” towards the violation of Section 5 of the Securities Act of 1933.
What you should know: At press time, XRP price traded at $0.457053 with a daily trading volume of about $6 Billion. XRP is up 1.94% for the day.
The crypto asset is currently the 7th most valuable crypto with a market value of $20.7 billion.
That being said, its parent company, Ripple is currently piloting a private type of open-source, public XRP ledger that allows Central Banks to create and manage a digital currency—enabling global interoperability.
- Recall some months back, Ripple revealed to the public that it was informed by the U.S Securities and Exchange Commission that they had plans to sue the founders in a Federal civil court. Ripple and its top lieutenants further disclosed that they planned to fight such allegations.
- Ripple has however significantly upgraded on how it manages XRP, relinquishing control of the future development of XRP over to independent developers.
But it still holds about 6.4 billion XRP directly and has an additional 48 billion XRP held in an escrow from which it periodically sells to the public.
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