“The complaint alleges that Ripple raised funds, beginning in 2013, through the sale of digital assets known as XRP in an unregistered securities offering to investors in the U.S. and worldwide. Ripple also allegedly distributed billions of XRP in exchange for non-cash consideration, such as labor and market-making services.”
The XRP price suffered tremendously. From its mid-November year to date high of just under $0.80, XRP has plummeted as low as $0.1686 at one point. This represents a 79% drop.
Today sees some semblance of a fightback, with the price up 2% in the last 24-hours to $0.2198 at the time of writing.
Source: XRPUSDT on TradingView.com
XRP Exchange Exodus Accelerates
According to crypto researcher Larry Cermak, that leaves Kraken as the only big exchange serving U.S. users wishing to trade XRP. However, Cermak is of the view that Kraken will fall in line with the others soon.
Kraken is now officially the last major exchange serving U.S. customers that hasn’t yet delisted XRP. Coinbase, Bitstamp, Bittrex, Binance US, FTX US all delisted already. Announcement must be imminent.
— Larry Cermak 🟨 (@lawmaster) December 30, 2020
The latest development sees a pre-trial conference set for February 2021, in which all parties have the opportunity to discuss the path forward.
The SEC’s Has a Strong Track Record
To determine what could happen to Ripple requires looking at past cryptocurrency-related run-ins with the SEC.
In the case of Tezos and EOS, Armstrong pointed out that both companies caved in and paid their respective settlements. Meaning neither firm went as far as going to court.
Whereas Telegram and Kik opted to challenge the SEC.
As such, while Garlinghouse says, “we are not only on the right side of the law, but we will be on the right side of history,” the truth of the matter is that the SEC has a strong track record.
With that, the odds are stacked heavily against Ripple.