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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

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Aluna.Social is a Compelling Social Platform for Crypto Traders and Investors

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When one thinks about the social media landscape, the companies that first come to mind are most likely Facebook, Instagram, LinkedIn, and Snapchat.  These platforms are a great way to stay connected with friends, families, and colleagues, especially when geographic distance is a factor.  But, in addition to just chatting about life in general and sharing pictures, social media can be used to bridge the information gap that exists within the investment community.

Over the last decade, many trading offices have been established in large cities all over the world which allow solo traders and investors to pay a monthly fee in exchange for a workspace.  The real benefit to trading in these offices is to participate in the free flow of trading ideas and information.  Proprietary trading is one of the most challenging careers to be successful at and the exchange of ideas is almost required in order to succeed.  Traders at hedge funds and investment banks work in teams so why shouldn’t remote traders?

While these trading offices are a great way to help bridge the information gap, Aluna.Social may provide an even better way, especially as it relates to cryptocurrency trading.

Mission Statement

Aluna.Social, founded by Alvin Lee and Henrique Matias, is a multi-exchange social trading terminal for crypto traders and investors.  The goal of the platform is to help newcomers shorten their learning curve,…

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CoinFlip Scores Big with BRD Wallet Partnership

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As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible.  While many crypto users are extremely tech oriented, a lot of those on the sidelines are not.  The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above.  In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country.  Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.

In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map.  Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells.  BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit.  The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.

Cryptocurrencies are already making a huge difference around the world.  Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies…

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Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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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?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

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

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