Ripple company is now facing severe charges from the US Securities and Exchange Commission for unregulated securities offerings worth more than $1.3 billion. Over SEC’s action, the price value of XRP faces selling pressure, which results in a loss of significant value.
The SEC mentions in the charge sheet that Ripple was unable to reveal much information to investors about the sale of securities.
XRP: Unregistered Security
Several crypto members have also criticized the company for its illegal actions in the crypto sphere. Prominent crypto analyst Willy Woo has made fun of this and stated:
“Ripple Labs: We have stopped dumping our treasury of XRP onto the market. I know we have been doing it for 7 years, and its our business model, but you know, everything is cool. Nothing to see here.
XRP Army: Buy more, no sell pressure!
SEC: Speechless”
Jake Chervinsky from Compound Finance claimed in his tweet that the recent initiative of the Securities and Exchange Commission is bad for the company. He explained XRP as security is “basically useless.”
Delisting of the Coin
As the US regulator called the XRP unregistered security, some small cryptocurrency exchanges have started to delist the token. Adam Cochran, Cinneamhain Ventures partner, has expressed surprise that the biggest exchanges have not removed the coin, but rather, some small exchanges, such as Beaxy Exchange, have deleted XRP from the platform amid legal action.
Nathaniel Popper, the New York reporter, claimed that some crypto leaders and investors are busy deleting their tweets, which showed support towards XRP. This shows people are unwilling to support the company and its executives in its difficult time when the SEC has released a comprehensive charge sheet against the San Francisco-based firm.
Ripple claimed the world’s first two blockchains, Bitcoin and Ethereum, are controlled by China. In reaction, Ethereum co-founder Vitalik Buterin responded to it and said:
“They’re claiming that their shitcoin should not be called a security for *public policy reasons*, namely because Bitcoin and Ethereum are Chinese-controlled.”
Money-transfer giant MoneyGram has not shared its statement over the latest development. Ripple was paying MoneyGram to use XRP in cross border payments.
After the SEC’s action, the price value of the coin has shredded most of the value. Over the timeframe of the last 24-hours, XRP has plunged by 19.62% and is trading at $0.37.