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Ripple (XRP) Sued for Breaking Security Laws

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Ripple

A recently-issued lawsuit against Ripple (XRP) claims that the crypto is scamming people. The lawsuit was filed in California this Thursday, and the ones that are suing are Ripple’s very own investors.

The new events in the world of cryptos saw some pretty negative development, especially for Ripple (XRP). This Thursday, on May 3, a class-action lawsuit was filed against Brad Garlinghouse, the CEO of Ripple, as well as against the company Ripple Labs itself. Not only that, but the lawsuit even includes Ripple’s subsidiary, XRP II.

The lawsuit against Ripple

The lawsuit was filed by the firm called Taylor-Copeland Law, which is a company that focuses their efforts on crypto and blockchain litigation. The company filed a lawsuit in California court this Thursday, and it did so on behalf of several Ripple investors, including Ryan Coffee.

The investors claim that Ripple is breaking both, federal, as well as state security laws in order to make money for itself. In addition to breaking laws, these investors also claim that Ripple is misleading the public regarding their services.

When they first hear about this, many assume that these people are just angry for investing into cryptos and losing money due to a bad investment. However, this time, it may not be the case. There is one thing different about Ripple, and this very difference is the most important element of the lawsuit.

In order to explain this, let’s see how things are at Bitcoin (BTC). Whenever a crypto miner validates BTC transactions, he gets a new Bitcoin. That way, BTC supply and demand are tied together, and the more people decide to use this crypto, the more of it will appear in the world.

In order for this process to start, ICOs are often being held by a new startup based on blockchain technology. A certain percentage of the firm’s digital currency is sold upfront, and the rest of the supply ends up being generated by the miners as they buy or sell tokens.

How is Ripple different?

Back in 2013, Ripple Labs decided to make 100 billion coins. They kept 80% of the supply, while the rest was distributed between the founders, according to the lawsuit. After that, the lawsuit claims that they held an essentially never-ending ICO, and sold off that XRP to the public.

Basically, Ripple was trying to convince the investors that there is an increase for XRP by the public when there really wasn’t any. The lawsuit also claims that Ripple attempted to bribe exchanges so that they would put XRP on the list.

Finally, the lawsuit claims that these signs point to XRP being a security. If this is true, then what Ripple did violates the SEC laws, since those laws say that companies need to announce certain info to their investors. This, of course, includes all the potential risks when it comes to investing.

What does Ripple say?

Ripple’s spokesman released a statement in which he said that the company has seen the lawyers’ tweet about the lawsuit. Just like any other proceeding, the company will do its own assessment in due time. As for the question of XRP’s nature, that is something that SEC will decide, but RIpple itself still firmly believes that XRP is not a security.

One of the biggest questions right now is what will happen to Ripple’s price? Negative press was able to damage it in the past, so even if the lawsuit doesn’t hurt the company, the negativity of the event might.

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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

XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange

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Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //

Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.

Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.

The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.

NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.

NFTs are already being actively traded in markets globally. For…

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Altcoins

Should Crypto Projects Devote Resources to Community Growth and Marketing?

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2020 has been an incredible year for crypto as investors have generated windfall profits and crypto projects have seen their businesses gain the spotlight they’ve been looking for.  While Bitcoin has received most of the attention after major institutional investors announced they were accumulating the increasingly scarce asset, many altcoins have also seen their fair share of glory.  When looking at all the big winners of the past year, the first project that probably comes to mind is Chainlink, having appreciated by more than 550% YTD and now valued at over $4.5 billion.  But, the actual biggest winner of the year is HEX with a YTD return of over 5,000%.

I mention both of the above projects as they have each taken slightly different paths to achieve greatness.  Chainlink has devoted resources toward building a fundamentally sound business with many strategic partnerships while HEX has spent vast sums of money on marketing and promotion.  Both approaches are valid, but one thing is certain, it is absolutely imperative for crypto projects to let the crypto community know what makes them special.  Of course, one of the reasons that makes crypto so valuable is the powerful blockchain technology that most projects are utilizing.

Cryptocurrency vs. Blockchain Technology

It’s important to make a distinction between blockchain technology and cryptocurrency.  Although they are often used interchangeably, they are different.  Blockchain technology and crypto were both created after the 2008 financial crisis, but cryptocurrency…

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Altcoins

XENO starts VIP NFT trading service and collaborates with contemporary artist Hiro Yamagata

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Hong Kong, Hong Kong, 24th December, 2020, // ChainWire //

The XENO NFT Hub (https://xno.live) will provide a crypto-powered digital items and collectables trading platform allowing users to create, buy, and sell NFTs. Additionally it will support auction based listings, governance and voting mechanisms, trade history tracking, user rating and other advanced features.

As a first step towards its fully comprehensive service, XENO NFT Hub launched a recent VIP service to select users and early adopters in December 2020 with plans for a full Public Beta to open in June 2021. 

“NFTs are extremely flexible in their usage, from digital event tickets to artwork, and while NFTs have a very wide spectrum of uses and categories XENO will initially focus its partnership efforts and its own item curation on three primary areas: gaming, sports & entertainment, and collectibles.”, said XENO NFT Hub president Anthony Di Franco.

He also added “This does not mean we will prohibit other types of NFTs from our ecosystem However, it simply means that XENO’s efforts as a company will be targeted into these verticals initially as a cohesive business approach.”

Development and Procurement Lead, Gabby Dizon explained, “Despite our initial focus, we found ourselves with a unique opportunity to host some of the works of Mr. Hiro Yamagata. We are collaborating with Japanese artist Hiro Yamagata to enshrine some of his artwork into NFTs.”

Mr. Yamagata has been…

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