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Ripple’s XRP crypto coin: Time to prove it’s not a security

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James Coffey’s class suit against Ripple has been gathering a lot of attention, especially on Twitter. Lots of Twitter users do not feel that the suit represents the feelings or the best interests of XRP investors unlike what the lawsuit claims. But this is still giving Ripple a chance to prove exactly what that company has argued all along: that XRP is not a security and has never qualified as one.

Ripple’s XRP remains the world’s third-largest cryptocurrency according to CoinMarketCap even as it’s been going down recently. Current price is at $0.77, which represents 8.7% decrease over the last seven days. Volume has gone down too from 602 million USD to 467 million. Over the last week, the value has remained in between $0.86 and $0.89; so it seems to be stalling.

But Ripple remains the most widely used platform in the world for international transactions not just by individual users but by banks and financial institutions as well.

Markets, investors, banks and other institutions have deemed Ripple’s coin as exceedingly useful in real-world terms. Because of Ripple’s proven usefulness and reliability, Mr. Coffee’s lawsuit against Rippple and Brad Garlinhouse (Ripple’s CEO) has not been very popular among the community of XRP.

Mr. Coffey’s complaint is based on a loss he made buying XRP when the tokens he purchased suffered a $551 loss. Then he used USDT to sell them which allowed him to recuperate $1,105, including losses.

The case’s facts are not disputed. It’s just natural that this kind of case cannot make every investor happy. The controversy started as Mr. Coffey’s lawyer (James Copeland) published this tweet:

This enraged some Twitter users who questioned the merits of the case because it’s supposed to be about XRP holders when most of them are not complaining at all. The lawsuit accuses Ripple of being the ‘never-ending ICO’ which implies that it’s transgressing US laws by not being registered as a security.

One Ripple XRP investor wrote that,

That kind of feeling has been a recurring theme among XRP enthusiasts who feel that the lawsuit is just about grabbing attention. But another recurrent subject is that Ripple has a chance to finally prove in a court of law that XRP is not security at all.

Alleging that Ripple’s coin is, in fact, security at the lawsuit’s heart:

“Plaintiff and the Class invested fiat and other digital currencies, such as Bitcoin and Ethereum, to purchase XRP. Investment of both fiat and digital currency meets the first prong of Howey.”

Howey is the legal test that is used to determine if a token or coin is actually a security. Ripple has been clear about this. They say there is no link between Ripple and XRP directly, and that the token is not a security by any means.

Mr. Matt Hamilton answered this on Twitter:

Another user, Kieran Kelly shares his opinion as:

We will have to see how things develop but this remains an excellent chance for Ripple to prove their point once and for all. If they can show indeed that XRP is not a security everything will surely move forward for them and for their users and investors.

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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.

Image courtesy of Koka Sexton via Flickr

Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

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Altcoins

Top 3 Coins to Buy Before They Go Big

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Crypto bulls are back, that much is clear. The long-lasting, harsh crypto winter is gone, and the new era in digital currency sector opens up some rather interesting opportunities. With many more bull runs expected to come in months ahead, a lot of coins are likely to blow up and maybe even hit new all-time highs, although that still remains purely theoretical.

On the other hand, the fact is that numerous coins are seeing prices that were not achieved since early 2018, and the overall momentum remains bullish. With that in mind, even if new records do not come for a very long time — chances are that many of the coins will blow up enough for investors to see some serious gains in months to come. As a result, investing in some of these coins now might be a very profitable decision, for those who have the patience to wait a few months. Here are some of the projects believed to have the greatest potential to go big in the second half of 2019 and beyond.

1. TRON (TRX)

Putting TRON on the list should not really surprise anyone, as the project constantly comes up with new project updates, partnerships, and alike. It also constantly breaks records, as is becoming one of the biggest players in the dApp and smart contract development sector.

In the past few…

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Blogs

Can Crypto Credit Cards Disrupt the Fight Against Financial Crime?

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It is commonly known that the world of finances has the biggest problem with the crime of all existing industries around the world. It has been so throughout history. While the financial world has evolved, so did the criminal activities, and they continue to be an issue. With the arrival of cryptocurrencies, many were hoping that financial crime might be disrupted. However, for now, at least, it appears that cryptos themselves cannot find a way to resolve issues such as international money laundering.

In fact, when it comes to money laundering, the crypto sector appears to be the weakest link, especially because of the nature of digital currencies. The anonymity that cryptos are being praised for means that anyone can get a payment from an unknown source from anywhere in the world. This method can then be used for financing drug trafficking, cyberattacks, terrorists, and more.

Until recently, it was not easy for bad actors to make use of cryptocurrencies obtained for illegal purposes. The number of merchants willing to accept the coins was low, and criminals were forced to find a way to exchange crypto into fiat currencies. However, this came with a set of issues, such as taking foreign exchange risks and then sending the money through wallets and exchanges to a banking system that would allow withdrawal. The banking account was the biggest obstacle here,…

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