Ripple: Will the SEC's $2 Billion Demand Trigger a Mass Exodus for XRP?
The SEC’s unprecedented $2 billion demand has triggered a plethora of new reactions within the XRP community. The new development entails the US Securities and Exchange Commission extracting $2 billion from Ripple as a penalty, which has been dubbed “exploitative” by many analysts and investors within the XRP community.
The new SEC-XRP update has perplexed market investors. With new developments catching pace, users are now forced to think about different narratives, including the one where XRP may undergo a price rehaul, which may end up crushing its momentum.
Also Read: Ripple: XRP to Break Past $6? This Analyst Thinks So
Ripple to Go Down?
A new debate has stirred up the XRP community. The SEC’s recent decision to penalize XRP has set a new development course in motion. Narratives have been floating around where this new update, disguised as $2 billion in demand, can be lethal for the price of XRP.
Criticizing the SEC’s current stance, notable lawyer Jeremy Hogan shared a new XRP probability. Hogan outlined how the SEC’s “backward demand” may prove detrimental to the XRP price.
“It wants $2 billion from Ripple, which would require Ripple to sell a lot of XRP, causing the price to drop, hurting the retail holder (you). It would then “disgorge” that money back to rich “institutional” holders.”
Also Read: Ripple XRP: Historical Trend Hints at 30% Surge in April
The attorney later stressed that Ripple would later be compelled to sell XRP to meet the SEC’s demand. This situation may end up hurting the token price momentum in its entirety. It may also trigger a “mass exodus,” harming XRP price prospects.
Soon after Hogan’s post on X went viral, the comment section on social media was rife with opinions criticizing the SEC. People were quick to accuse the SEC, adding how unfair and unethical the agency’s stance truly is.
Brad Garlinghouse Comments On The SEC’s $2 Billion Demand
Venting his opinion on social media, Ripple’s CEO Brad Garlinghouse took to X to share his side of the story. Garlinghouse reiterated how unfair the SEC has truly been, outlining the fact that the agency is hell-bent on punishing Ripple from all possible fronts.
“The SEC plans to ask the judge for $2 billion in a case that involved no allegations (let alone findings) of fraud or recklessness. There is absolutely no precedent for this. We will continue to expose the SEC for what they are when we respond to this.”
Echoing Garlinghouse’s stance, Ripple’s chief lawyer, Stuart Alderoty, further shared another scathing update.
XRP Price Analysis
Despite the current market dynamics, Ripple continues to hold steady ground. The token is down 2% in the last 24 hours, maintaining a stable level of $0.62.
With perplexing narratives in the space, crypto analytics platform Coincodex predicts that the token will gain steady price momentum in the coming weeks.
“The price of XRP is predicted to rise by 7.55% and reach $0.680671 by April 26, 2024. Per our technical indicators, the current sentiment is neutral, while the Fear & Greed Index is showing 83 (extreme greed). XRP recorded 18/30 (60%) green days with 5.05% price volatility over the last 30 days.”
Comments
Post a Comment