Ongoing Ripple-SEC Lawsuit is Causing Ripple (XRP) Investors To Buy Up Chronoly.io (CRNO)
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With the ongoing saga between Ripple Labs, the team behind Ripple (XRP), and the Securities and Exchange Commission (the SEC), looking like it’s not going to reach a conclusion any time soon, long-term XRP holders are starting to look for more viable coins to invest that aren’t held down by a lawsuit.
In 2018, a private class action lawsuit was issued against Ripple Labs that alleged it had created billions “out of thin air” in what seemed to be a “never-ending initial coin offering”.
It seems like the SEC took notice, starting legal proceedings in late 2020 against Ripple Labs and two of its leaders for allegedly selling unregistered securities. They claimed that XRP was a security, not a commodity, as it was being distributed by Ripple Labs in a centralized fashion and had not been adopted by financial institutions as Ripple claimed it would.
They further claimed that Ripple (XRP) execs sold 14.6b units of Ripple for over USD 1.38b to fund the company and make themselves rich. Shortly after, Coinbase suspended trading of XRP, causing prices to plummet nearly 50%.
Now, nearly two years on, there hasn’t been much progress, with the SEC and Ripple Labs fighting a bitter battle in court. The SEC has recently sought to block more than 1700 XRP holders from testifying in defense of Ripple Labs, while Ripple has been unsuccessfully trying to add additional evidence to the case that they claim would get them off the hook.
It’s causing many XRP investors to doubt the future of Ripple Labs when there are so many other coins that provide a greater reward compared to the risk of holding them. Chronoly.io (CRNO) is one of these
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