Ripple (XRP): 14 Things to Know About the Ripple Lawsuit as XRP Plunges
Ripple (CCC: XRP) will be beaten on Wednesday after it was revealed the SEC is suing the US Securities and Exchange Commission.
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Here's everything investors need to know about the Ripple lawsuit.
The SEC is pursuing the company for allegedly offering securities in lieu of cryptocurrency.
So it has Ripple and its CEO Brad Garlinghouse and co-founder Chris Larsen in their sights.
The SEC argues that XRP should be treated the same way as shares in a public company.
Ripple argues against this claim by stating that XRP has been identified as a currency in the past.
This shows that it is not subject to the same rules that a security must comply with.
The company toyed with the idea of moving its headquarters overseas.
This would be done to avoid further regulatory problems in the US.
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XRP is a cryptocurrency in the same way as Bitcoin (CCC: BTC) or Ethereum (CCC: ETC).
One key difference, however, is that Ripple sells it in segments at specific times.
This is very different from the typical mining method that other cryptocurrencies use.
Ripple has also looked for ways to attract new users, such as: B. Airdrops via Flare Network.
This also serves to further decentralize the cryptocurrency and eliminate the middleman.
The bad news for Ripple comes when cryptocurrencies get extra attention.
This includes making all-time highs in Bitcoin and submitting Coinbase crypto exchanges for an IPO.
The XRP fell 31.9% on Wednesday morning.
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At the time of publication, William White held positions (neither directly nor indirectly) in any of the securities referred to in this article.
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