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Another Lawsuit Claims that Ripple (XRP) is a Security

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Ripple
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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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Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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collateralized debt position
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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

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The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

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