The price of XRP has been falling down of late, today's chart shows a fall of 24%, and yesterday XRP had a fall of 17%.
This comes at a time when Ripple is in news with the United States Securities and Exchange Commission (SEC) under the chairmanship of Jay Clayton is preparing to sue Ripplefor selling XRP crypto currency as unregistered securities.
Ripple team is firm on XRP being a cryptocurrency not security
Ripple’s CEO, Brad Garlinghouse is ready to fight back as he says that XRP is a cryptocurrency and not a security. Brad says that SEC is restricting American innovation with such a move to BTC and ETH cryptocurrencies which he has repeatedly said is centralised as these cryptos are likely to get controlled by Chinese with Chinese crypto currency mining pools having control of most of Bitcoin’s blockchain.
SEC’s non-clarification of it’s stance on XRP had investors keep off this crypto
Many argue that Ripple is a very centralised cryptocurrency, with at least half of XRP’s supply held by Ripple. Moreover, Ripple conducts sales of XRP tokens every quarter to stay profitable.
SEC has ruled that Bitcoin and Ethereum is decentralised and therefore is not a security, however, they were not delivering their verdict on XRP soon enough. This regulatory uncertainty has had many investors stay off XRP.
Brad questions the timing of this litigation as well, as the term of the current administration with Jay Clayton as chairman of SEC ends this year.
XRP would be delisted from exchanges if it’s declared to be a security
If XRP gets classified as a security, crypto exchanges would delist it and it would be under the strict control of the SEC which is unwelcomed by the XRP community.
XRP is a good crypto for exchanging value with cheap transaction costs and speed
True XRP is not decentralised like BTC or ETH, but it is certainly useful and needed. The transaction fee of transferring XRP is very cheap while also speedy. During times of high ETH transaction fees, the cost of transferring USDT from one exchange to another was high as USDT is a ERC20 token. However, there was a way to bypass this by converting USDT to XRP and transferring XRP to the recipient crypto exchange.
:-) it doesn't change that the XRP coins from time to time gets involved in some scandal and although they are quite right in stating that the BTC is not 100% decentralized , the XRP CEOs don't enjoya moral high enough to accuse another coins, we will have to wait and see what happens and where this scandal ends and be attentive to the ecosystem.
Hello @mintymile
There are two points that catch my attention in your writing.
The mention of Ripple's centralization, despite being a cryptocurrency, to be centralized goes against a basic principle from which cryptos arose, however, as you mention, as much of the power of the BTC Blockchain is in control of large mining farms in China, it goes against decentralization...
With ripple, we have to wait and see if it comes out favored or more damaged in this process.