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Another Lawsuit Claims that Ripple (XRP) is a Security

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Yet another lawsuit against a cryptocurrency known as Ripple (XRP) claims that this crypto is actually a security. The lawsuit was filed in San Mateo County, in Superior Court of California by David Oconer, one of the state’s residents.

Ripple faces another lawsuit

Ripple (XRP) has, no doubt, contributed a lot to resolve some of the problems of the modern transactions system. However, this did not prevent multiple parties from filing lawsuits against Ripple and claiming that it is actually a security.

The newest lawsuit came from California, filed by one of the state’s residents, David Oconer. According to Oconer, who has filed a lawsuit in the Superior Court of California, the company Ripple has created XRP in order to fund its own operations by using token sales. Oconer’s lawsuit has named Ripple Labs, the company’s CEO, Brad Garlinghouse, as well as XRP II and 25 other unnamed individuals as defendants.

Part of the lawsuit states that Ripple (XRP) has sold tokens that have all the attributes that would indicate that the XRP is a security. However, the lawsuit also states that the defendants did not register them as securities. Additionally, the purchasers of XRP have bought it expecting to make a profit, inspired by defendant’s frequent highlights that buying the coins would earn them additional money.

The Ripple controversy

Basically, just like other lawsuits against Ripple, this one also claims that the parties that purchased XRP, Oconer included, did so expecting to earn money, which clearly did not happen due to constant price drops. Now, Oconer wishes to sue the company for damage. Additionally, he noted that traditional securities give purchasers a certain amount of control over the company that is selling them, while RIpple does not.

He even accused Ripple of being in complete control of the currency and XRP ledger, and that Ripple’s network is not decentralized.

This is not the first time that Ripple was accused of these exact things, and in the first suit Ripple was represented by Mary Jo White, SEC’s former chair, as well as one of SEC’s former officials, Andrew Ceresney. So far, it is unknown whether they plan to represent the company in other suits as well.

What is currently known is that Ripple will be represented by Skadden Arps, a law firm from New York, in at least one of the suits.

Ripple’s stance towards the XRP has not changed, and the company’s CEO has already stated publicly that XRP is not a security. He continues to claim the XRP is decentralized, and that it has separated from Ripple Labs. He also said that buying XRP coins doesn’t give investors ownership of any part of Ripple, the company.

The lawsuits against Ripple continue to pile up, and the company has yet to comment on the recent development.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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How is the Crypto Market Changing?

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It has been around a month and a half since the start of 2019, and there are already some pretty obvious changes in the way the crypto market operates, especially when compared to the last year. Early 2018 was almost a complete opposite. The previous year started with cryptocurrencies at their strongest, only to see them crashing down after a few weeks. Back then, the ICO model was still quite strong, and so was the hype surrounding the crypto space. New investors kept entering the space, and new startups emerged with their tokens ready to be sold.

As the year progressed, things started to change. The prices continued to drop, the ICO model went down from around $1.4 billion in raised funds at the beginning of the year to only $100 million in the last month.

The ICO model lost investors’ trust, as many of the projects turned out to be either too weak to survive after the crypto winter struck, or scams which tricked investors out of their money and disappeared. Not to mention that the increase in ICOs popularity attracted the regulators who cracked down on them pretty hard, especially in the US.

With all of that happening, it is of a small surprise that the investors started giving up on ICOs, especially with the constant drops in prices which saw even the largest coins…

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Understanding the Uses of Different Types Of Cryptocurrencies

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Cryptocurrencies – a term which has become incredibly prominent in the mainstream media during recent years due to the proliferation of Bitcoin millionaires. As a result, the new form of currency has earned an almost infamous status. However, as with any major step forward, there is still much confusion regarding the use of cryptocurrencies, what different types of innovative electronic cash exist and what they might mean for the future.

We’re putting all of this to rest as we explain what each of the leading cryptocurrencies can do.

Bitcoin

The most popular form of cryptocurrency, Bitcoin was first thought up in 2008 by the elusive and still unknown creator, Satoshi Nakamoto, who published the whitepaper online.

It took almost a decade for the cryptocurrency to reach its peak, but in December 2017 a single Bitcoin roughly exchanged for the price of $17,000, meaning anyone who held a substantial amount of the electronic cash became significantly wealthy.

In its early years, the cryptocurrency was strictly used as an alternative for cash transactions, and predominantly for trading goods and services. However as it has increased in popularity, its range of uses has also widened, now deployed for a variety of purposes including acting as collateral for investments at merchant banks, a direct debit for subscriptions services and most notably for sports betting.

Ripple

Bitcoin’s closest source of competition, Ripple was founded…

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New DoJ Ruling May Cripple Gambling dApps

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A new decision made by the US Justice Department has expanded restrictions regarding online gambling in the US affecting gambling dApps. While the Federal Wire Act of 1961 prohibited online gambling regarding sports since 2011, the new decision expanded on this, and it now includes all forms of internet gambling. Unfortunately for many, this now also includes cryptocurrencies.

The new decision came due to considerable difficulties when it comes to guaranteeing that only interstate betting will take place and that payments will not be routed via different states.

The new announcement was explained in a 23-page-long opinion issued by the Department of Justice’s legal team, which pointed out that the 2011 decision misinterpreted the law. According to that decision, transferring funds was to be considered a violation, but data transfers were not included. By exploiting this oversight, it was possible for gamblers to turn to internet gambling. Unsurprisingly, many have realized this early on, including startups, as well as large, established firms. This, of course, also included cryptocurrency companies as well.

The new decision changes what is allowed online

The decision to include all forms of internet gambling is a massive hit in the…

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