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Charting the course of XRP


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2 minutes ago, Baka said:

One big exchange liquidated all his XRP for other coins.

Only this must have played a part in the crash , now imagine coinbase doing that in 48 hours

Which exchange are you referring to?

Edited by xrpcries
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19 minutes ago, Baka said:

If coinbase does it , other exchanges may follow.

It will hurt badly the price, that's the problem

That's what everyone said in 2019 when they said coinbase would make XRP moon in a bear market. Didn't happen. 

Now we are in a bull market so I don't think it will be a big deal. Im not even sure coinbase will delist with the SEC giving guidance on exchanges being able to list XRP.

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2 hours ago, xrp-nuke said:

It matters, because not Ripple created XRP, Ripple was given XRP.

https://xrpl.org/history.html

ETH creators as well premined or wtv amount of ETH, and 100% they use them the same way Ripple does. But ETH is not security, yet.

I have no experience with Securities Act of 1933, and I'm not sure if the SEC handles this as a civil proceeding or via an administrative law proceeding like the other regulatory agencies (EPA, HUD, EEOC, etc..) do, but I would assume the same legal standard would be applied here: If it's impossible to determine who owns (creation of something tangible or intangible is irrelevant) this intellectual property (IP), the question would be who or what can reasonably be determined to be in the care, custody and control of said IP? 

I decided to take a deep dive and create a fact pattern from Ripple Labs, Inc.'s corporate filings from the California SOS's website and from the history made available via https://xrpl.org/history.html.  According to the aforementioned link, which may or may not be correct, we know that:

  1. By June 2012, Schwartz, McCaleb and Britto completed code development and the XRP Ledger was fully functioning.
  2. At that time, they decided their next move would be to gift 80 billion XRP to a not-yet-formed private company that would work with the broader community as well as pursue its own payments mission. The ledger code itself would be open source and for anyone to use.
  3. They all agreed on how to allocate the XRP among themselves and the future company, and they eventually created the company along with Chris Larsen in September 2012.
  4. Once the XRP Ledger was fully functioning, 80% of the XRP was gifted to the company—initially called NewCoin and renamed quickly to OpenCoin.
  5. Chris Larsen was the CEO of OpenCoin, and at the company's founding, Jed was co-founder and CTO, David Schwartz was the Chief Cryptography Officer, and Arthur Britto an advisor.

From the California SOS's website, we can confirm that "NewCoin, Inc." was formed as a domestic corporation in California on September 19, 2012 (see Exhibit "A"). On October 3, 2012, NewCoin, Inc. amended its Articles of Incorporation to change the legal entity to "OpenCoin, Inc." (See Exhibit "B"). On December 12, 2012, OpenCoin, Inc. completed and had recorded a Statement of Information (Form E-P86762) that discloses it engages in "financial services" and its officers and directors are (see Exhibit "C"). On October 18, 2013, OpenCoin, Inc. amended its Articles of Incorporation by changing the legal name to "Ripple Labs Inc." (See Exhibit "D"). Lastly, on September 15, 2014, Ripple Labs Inc. dissolved its status as a domestic corporation formed in California and formed this entity (usually due to tax advantages) in the State of Delaware (See Exhibit "E").

Exhibit "A"

NewCoin.png

Exhibit "B"

NewCoin.png

Exhibit "C"

Open-Coin-SI-Complete.png

Exhibit "D"

Rippble-Labs.png

Exhibit "E"

Ripple-Labs-DE.png

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This is the risk that we all mention but never actually want to see. I don’t think this SEC issue will delay the crypto bull market I think it will cause XRP to just miss out on the bull market.

So for three years, XRP is the worst performing asset on many occasions and then once XRP gets a recovery, then the SEC wants to show up with a case going back 7 years.

I don’t think it matters if we think Ripple will win or not at the moment. I don’t see the price going anywhere for a long time. And for potential ODL customers, this seems like a disaster.

Edited by AlejoMoreno
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59 minutes ago, AlejoMoreno said:

This is the risk that we all mention but never actually want to see. I don’t think this SEC issue will delay the crypto bull market I think it will cause XRP to just miss out on the bull market.

So for three years, XRP is the worst performing asset on many occasions and then once XRP gets a recovery, then the SEC wants to show up with a case going back 7 years.

I don’t think it matters if we think Ripple will win or not at the moment. I don’t see the price going anywhere for a long time. And for potential ODL customers, this seems like a disaster.

Hate to agree but I agree. 

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I've been trying to think about some potential positives that might come out of this. 

1. This shakeout will definitely remove all the weak hands (and even many strong ones). The only people that are left holding the bulk of xrp have iron hands that won't sell at a measly profit or to break even. Therefore price appreciation can happen easier.

2. 9-12 months from now this suit will be mostly forgotten but happening in the background. Assuming no major exchange delists xrp I think this will be the case. When bitcoin is pushing 100k retail will still buy xrp. It may to be able to reach new ATHs but manages to hit previous ATH of $3.80.

3. While I think it is unlikely the new SEC head will drop this case it is plausible that they offer Ripple a more favorable settlement. Maybe this happens because Ripple argues their case well in court. Perhaps hefty fine for Ripple but the blessing to do as they please with some minor limitations. XRP is labelled a virtual currency instead of security and the price pumps before the bull cycle ends in 2022. 

4. This is probably my most daring of predictions - Ripple being the biggest bag holder of XRP manipulates the price up. It's 80-90% of their revenue so they don't let it drop like a stone in the ocean. They do whatever it takes such that XRP makes gains like all other alts in 2021. 

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8 hours ago, xrp-nuke said:

It matters, because not Ripple created XRP, Ripple was given XRP.

https://xrpl.org/history.html

 

ETH creators as well premined or wtv amount of ETH, and 100% they use them the same way Ripple does. But ETH is not security, yet.

so what is the differene between eth and xrp that caused sec to state xrp is a security, while eth is not?

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