Ripple: Former SEC executive gives hope to XRP investors
The case of Ripple v. SEC is a proxy war of the crypto economy against US regulators. A former SEC employee has now said the company has a good chance of winning this legal battle.
For XRP investors, the dispute between Ripple and the US Securities and Exchange Commission (SEC) is turning into a test. In just one week, the XRP price plummeted by over 60 per cent after the lawsuit became known at the end of December. Since that trough, however, the Crypto Bank asset has posted a gain of over 140 percent. XRP has retaken its place ahead of Polkadot as the fourth largest cryptocurrency. But even if optimism is spreading among XRP investors, the current price development is on rather shaky ground.
Risen from the Ruins
This is because the race to catch up is also the result of flash mob-like pump-actions by traders who organise themselves via Telegram Channel. In groups such as “Buy & Hold XRP”, which already has over 170,000 members, investors are currently arranging large pump actions that are driving the XRP price up further.
However, while some impatient people are asking for the next “coordinated pump”, the first sceptics in the group are already warning of the “biggest scam”. A similar herd instinct can also be observed on Dogecoin since a few days. The fact that the community has now sworn itself to XRP is probably due on the one hand to the drastic slump. Having hit rock bottom, XRP was an easy target for a collective revival.
On the other hand, the clinch with the SEC is also mobilising crypto-regulation opponents. Similar to the supposed David-versus-Goliath battle of the Wallstreetbets group against hedge funds, the XRP betting on Telegram can be interpreted as a statement against regulation of the sector. How long this pumping trend will last remains to be seen. Even if idealism may play a role, the house of cards could collapse at the first widespread profit-taking.