, 2 years ago
The entire market for cryptocurrencies knew only one direction in recent weeks: up! However, one asset has lost value, even though it had risen massively just a few weeks earlier. What was the reason for this rollercoaster ride?
Initially, XRP had started into a real rally at the end of the year. It was triggered by an airdrop of the so-called Spark token. The idea behind it was relatively simple. Everyone who held XRP on a certain date and fulfilled some technical requirements received the token as a gift on a pro-rata basis.
Therefore, the price of XRP increased massively, because many investors also wanted to have something as a gift and wanted to stock up on XRP before the deadline. However, this rally did not last long. On the one hand, because the snapshot finally took place and on the other hand, because there was simply bad news to report.
The SEC is the U.S. Securities and Exchange Commission and thus regulates the financial market. On Dec. 22, the agency announced that it was filing suit against Ripple and two of the company's founders.
The SEC accuses Ripple of offering an unregistered security on the market. The basis for this is the fact that Ripple originally developed XRP, holds much of XRP itself in the company's assets, and has sold XRP to investors in the past.
Based on the individual circumstances, the SEC considers these sales to be an offering of securities rather than a sale of crypto.
If the SEC wins in court, then the logical consequence could be that XRP could be classified as a security. This would initially make the US market inaccessible because an exchange license would be required to trade XRP. However, most providers do not have licenses to be allowed to offer securities.
Another fear is that other countries might share the SEC's assessment. This is because regulatory issues in the U.S. often have direct consequences for the global market because the location is very significant.
Due to the uncertain situation, some providers and market makers have stopped trading XRP either entirely or for US customers. Due to these overall circumstances, a large portion of investors panicked and there was heavy selling of XRP, leading to the massive price collapse.
May 22, 2023
On Saturday, Tornado Cash's DAO was taken over by an attacker, or group of attackers. It's another backlash for the plagued coin mixer which makes privacy for Ethereum holders possible. In an interesting turn of events, a day later the attacker proposed to undo his attack. Never a boring day in crypto!
May 17, 2023
Ripple has been fighting against the SEC in court since December 2020. Some analysts believe that the case could conclude this year, while others argue that each party could try to appeal the court’s decision. Whether the subject is finally settled, all believe the first verdict will provide essential guidance in the US judicial system. Should the SEC lose, then many other crypto projects could be strengthened. Winning the case could mean the SEC could go after many other cryptos.
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Apple's WWDC 2023 event will kick off on June 5. Rumors that Apple will present a first look at its AR/VR headset are doing the rounds. Supposedly looking like a pair of ski goggles, the headset will only arrive on the market at the end of this year. Being crypto investors, let's talk a bit about the potential implications of this for metaverse coins.
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Today the Bitcoin Cash network will go through a voluntary hard fork to implement an upgrade. One particular part of that upgrade is highly interesting since it introduces tokens on the Bitcoin Cash blockchain. Tokenization has been a topic for several years and it seems that Bitcoin Cash is late for the party. However, Ordinals have proven on Bitcoin that even a late arrival can still unleash a storm and create a billion-dollar market.
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