The value of one of the world’s most valuable cryptocurrencies has crashed and the recently filed SEC complaint is at the root of the free fall. according to this CoinMarketCap, The value of the XRP token has declined more than 42% in the last 24 hours and is down more than 63% from a 30-day high of $ 0.76. Now it sits at just $ 0.27.
XRP price fluctuations have led to the most talented rival of cryptocurrencies. Since reaching an all-time high of $ 3.84 in January of 2018, the coin has spent a lot over the past two years and has been flowing closer and closer to pennies. In the past month, on the back of major rallies from other cryptocurrencies, XRP has seen its biggest rally in years, but all those gains were erased this week. Wave CEO Brad Garlinghouse’s admission that the SEC was planning to file a comprehensive lawsuit against the company during the last days of the current administration.
Of SEC Original argumenT is that XRP is always a security and should have been registered with the Commission more than 7 years ago. The SEC claims that the culprits in the case – namely the company Ripple, CEO Bran Garlinghouse and executive chairman Chris Larsen – generated more than $ 1.38 billion from the sale of the XRP token.
Ripple was recently valued at $ 10 billion after a $ 200 million funding round. Ripple and XRP tokens differ, but Ripple is an important part of the currency’s market cap and at one time XRP tokens were referred to as “waves” and shared a logo with the company.
The company’s line is that XRP is not a security, but is, in fact, a tool for financial institutions, although the volatility of the coin has discouraged banks from actually adopting tokens. Meanwhile, XRP is present on several cryptocurrency exchanges, a fact that could expand the scope of this legal complaint and affect more players in the space.
In blog post It was published yesterday that shortly after the SEC filed the lawsuit, Garlinghouse wrote that the SEC’s claims were “completely inaccurate on the facts and the law” and that the company “believed” they were ultimately a neutral fact- Will prevail in front of the finder. “