Ripple (XRP) Facing New Allegations for Price Manipulation
One of the latest events related to Ripple Labs has nothing positive in it. Private XRP crypto-investor alleges in the last security fraud lawsuit that Bradley Garlinghouse – the CEO of Ripple and Ripple Labs Inc. have mixed their proprietary Ripple tech and also price manipulated for their profit.
All three lawsuits allege that the centralized status of XRP and the mining-less supply model gave the opportunity to Ripple Labs Inc to have a not-stopping Initial coin Offering period. This led to raising near $100 mil worth of their token. This is equal only for the FourthQ in 2017.
Even that there is a long-running debate going on if XRP is a security or not it has still to be clarified. Kyle Samani, Multicoin co-founder added that traders should stay away from Ripple, as he said it is for sure a security. But, Brad Garlinghouse – Ripple’s founder, strongly denies any claim that it is a security of any sort.
“It’s quite clear to us that Ripple is a security. We don’t know when that news is going to drop, but the catalysts seem to have kind of gone away from Ripple […] My point is, if Ripple is labeled a security formally by the SEC, all of the crypto exchanges are going to stop trading Ripple. So if that happens, liquidity is going to dry up on XRP and the price will plummet.”
But, keeping in mind that it is still not classified as a security, all three hits against Ripple Labs could be connected and blowing away the blurry vision. The Recorder reports that the sale of XRP “dwarfed any other source of revenue at Ripple”.
If the famous Howey test [test created by the U.S. Supreme Court in 1946] finds out as to whether the asset is a security or not much will be discovered. Accordingly, it could be proven if the story is one very long illegal ICO that would be followed up with the lawsuits turning successful giving a massive critical hit against the crypto-verse in a global range. Or if it fails and Ripple [XRP] continues its success in the market and adoption for the better.