Ripple’s XRP Sales Sparks Intense Discussion – What It Means for XRP Supporters

The post Ripple’s XRP Sales Sparks Intense Discussion – What It Means for XRP Supporters appeared first on Coinpedia Fintech News

A series of heated tweets has ignited a debate within the crypto community about Ripple’s authority to sell XRP tokens. This discussion was sparked by a recent exchange between XRP advocate Bill Morgan and crypto analyst “Darkhorse” on the X platform.

Ripple’s Right to Sell XRP

Bill Morgan, a vocal supporter of XRP, contends that Ripple faces no legal constraints on selling its XRP tokens, except in the context of institutional sales. This response came after Darkhorse referenced a ruling by Judge Analisa Torres in July 2023, suggesting that Ripple was not permitted to sell XRP.

Are you ok? Have you lost track of you point. Again wheres the ruling allowing Ripple to sell from judge torres. As exchanges are institutional buyers… seems you seem to be stuck in a loop. Or pretending not to sure, secondary sales is that "secondary" how did they do the FIRST

— ĐΛRKHØRSΞ (@DarkhorseDNME4) January 16, 2024

Morgan argues that Ripple is within its legal rights to sell XRP, clarifying that such sales should not be construed as investment contracts under U.S. Securities law. He emphasizes that nothing prevents Ripple from selling its XRP, and the real question is whether it needs to register these sales with the Securities and Exchange Commission (SEC) in the U.S.

Following Judge Torres’ decision, another X user pointed out a crucial aspect regarding Ripple’s XRP sales. Due to the acknowledgment of Ripple’s involvement with XRP, these sales might now be considered securities transactions, implying expectations of increased value due to Ripple’s activities.

Despite this, Morgan points to the past five years’ performance of XRP’s price as evidence that expecting profits from Ripple’s efforts may not be reasonable. He suggests that those buying XRP post-July 13th with such expectations might be deemed irrational.

What’s Happening with XRP’s Price?

This legal debate unfolds against the backdrop of Ripple’s recent transfer of 80 million XRP tokens, valued at approximately $46.18 million, to an undisclosed wallet. The transaction, reported by blockchain tracking service Whale Alert, has triggered speculation within the XRP community.

These developments have influenced XRP’s market performance. Experiencing a 1.5% decline in the past 24 hours, XRP’s price dipped to $0.566. However, over the past week, XRP has displayed resilience with a 2.6% increase.