The crypto markets have been taking a beating this year, and it doesn’t look like the punishment is about to end any time soon. New evidence has come to light that could cast a huge shadow over the number two cryptocurrency by market cap.
Ripple is currently battling a number of lawsuits that all claim XRP is a security token rather than a utility token. If the US Securities and Exchange Commission (SEC) rules that XRP is a security token, it will cause chaos, potentially sending its price plunging back to 2014 lows of $0.003.
Changing Wording to Cover its Tracks
We aren’t sure if the website guys over at Ripple know, but there is this awesome tool called the Wayback Machine and it essentially archives a copy of most popular websites every time a new iteration comes out. According to a version of the site on March 27th, 2014, XRP was created by Ripple Labs – something that would make XRP a security token. However, since then the website has changed its wording significantly to say
Ripple, the company, didn’t create XRP; 100 billion XRP was created before the company was formed, and after Ripple was founded, the creators of XRP gifted a substantial amount of XRP to the company.
These two contradictions could cause trouble for Ripple in the courtroom, as either they were lying to customers back in 2014, or they are now – pick your battle very carefully Ripple.
Mike Dudas Exposing XRP
Mike Dudas – The Block CEO – recently began investigating XRP and Ripple to reach his own conclusion on whether XRP is a security or not. His research went into great depth, and he uncovered some unnerving things for XRP holders. He took to his Twitter account to publish all of his findings along with some opinions on the matter – in short, it’s not looking good for XRP.
? @Ripple & $XRP
2013: “Ripple Labs created 100 billion XRP within the Ripple network, and that amount will never increase.” https://t.co/kGUjfNE6i2
2018: “Ripple the company didn’t create XRP; 100 billion XRP was created before the company was formed” https://t.co/VSwcXjmj8t pic.twitter.com/KbgpOQsLwy— Mike Dudas (@mdudas) November 23, 2018
The Crypto World Dislikes Ripple Already
Earlier this year, Ripple Labs announced Bill Clinton as the keynote speaker for its Swell conference. However, since Clinton has no affiliation to the crypto world and isn’t seen as a leading crypto figurehead, Ripple critics had a field day. The crypto community was quick to troll the company with brilliant memes, mocking the announcement with pure creativity.
SWIFT Calling Out Ripple Fake News
A number of media outlets reported that SWIFT was using Ripple’s xRapid technology in its latest system upgrade. This was all conjecture based on the fact a Ripple representative was at SWIFT’s Sibos conference and reporters jumped to conclusions. A spokesperson from SWIFT quickly cleared the air about the alleged partnership saying
I’m not sure where those rumors are coming from but the upcoming standards release … is entirely unrelated to RippleNet.
Not one to go down quietly, Brad Garlinghouse – Ripple CEO – quickly retorted back with his own words about SWIFT. Despite the fact that the SWIFT representative wasn’t overly cruel and mean about Ripple, Garlinghouse sure had some pretty harsh things to say about SWIFT.
In an interview with Bloomberg about the matter, Garlinghouse said,
I think what we’re doing and executing on a day-by-day basis is – in fact – taking over Swift. In that, we’ve now signed up well over 100 banks. Some of the largest Swift-enabled banks in the world are now using Ripple’s technology.
Is Ripple in Trump’s Pocket?
Ripple could have a trump card up its sleeve in its impending court case. Trump has made it very clear that he believes China could destroy – or control – Bitcoin very easily, and for that reason he is cautious about the cryptocurrency. In order to fight back, Trump is looking towards pre-mined cryptos – like Ripple – as a weapon to use in a potential crypto war with China. This bond and partnership between the two could see Trump delivering an executive order that reverses any negative SEC decision about the cryptocurrency.
The future of Ripple still remains as clear as mud, but it’s not long before we will have an answer from the SEC. If Ripple is in fact deemed a security, crypto markets could see a huge wave of negative sentiment and further weeks spent in the red. On the other hand, people looking to escape the doomed XRP could help boost other cryptos that share a similar technology – such as Stellar.
