You may have heard of the landmark score by Ripple winning against Securities and Exchange Commission with the ruling tha XRP crypto is not a security.
Reportedly some experts argue that the non-security status of XRP may give the founder of Ripple and the firm a free pass to dump their token holdings adding to selling pressure across exchanges. They argue that this move may make them unaccountable for large volume of token sales.
This judgement will also make a way for more crypto projects and traders to pump and dump schemes with no accountability or recovery from the founding team.
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Previous instances of token pump and dump by crypto founders and developers have caused big losses for the investors and with this XRP status as a non-security may likely to promote such projects which could influence the market participants negatively.
The crypto market participants have rejoiced following the ruling, pushing the price of XRP up, however multiple experts in the crypto space have take the contrarian stance. They think the judgement has loopholes which could impact traders in the market negatively.
Pump and dump schemes have effected the crypto investors for years. projects that release their token on Coinmarketcap or CoinGecko after it is listed on an exchange, attracting throngs of investors who then dump the tokens on exchanges. And this judgement is seen that it could open loopholes for pump and dump schemes and projects.
But anyway, the price of XRP has skyrocketed after this ruling by the federal court declaring that its sales on crypto exchanges complied with United States securities laws. But we don't know what the implications of this ruling would be in the coming future.
What are your thoughts about the ruling, how could this impact the crypto market and the arguments by multiple experts?
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