Cryptocurrency investors are bagging XRP (Ripple) amid the hope of a resolution in favour of XRP in a legal tussle with the United States Securities Exchange Commission (SEC).
Investors King learnt that there has been an XRP buying frenzy in the last 24 hours
Cryptocurrency investors believed that if Ripple Lab, the parent company of the XRP token win its lawsuit against the United States SEC, there might be a sudden spike in the attractiveness of XRP supply, which would likely cause a jump in price.
It could be recalled that in November 2020, the Securities Exchange Commission sued Ripple and two of its executives for raising $1.3 billion through an unregistered digital asset.
SEC alleged that Ripple raised funds through the sale of XRP to United States Investors and worldwide. SEC also alleged that Ripple Lab used its token XRP to pay for Labour and marketing-making service.
The Securities Exchange Commission classified XRP as unregistered securities which could not be sold as a public offering to finance the company’s business.
The whole cryptocurrency community was stunned by the lawsuit. This forced several XRP investors to sell their investments.
However, Ripple Chief Executive Officer, Brad Garlinghouse absolve the company from all allegations and alleged SEC of legal bullying. He claimed Ripple did not violate any U.S Securities law in the sale of XRP.
Meanwhile, both SEC and Ripple have applied for summary judgment which could bring the legal tussle to a logical conclusion if none of the parties is interested to further the case after the summary judgment.
Ripple nonetheless believes that SEC has no solid case while it is acting outside its constitutional jurisdiction.
A win for Ripple Lab will be a major victory for the wider crypto community as many cryptocurrency investors suspected that the lawsuit is a sort of witch hunt against cryptocurrency adoption.
XRP price action subsequently responds to the news. XRP opened at 0.45 cents on Saturday and traded at 0.55 cents before it receded. It is currently trading at 0.48 cents at the time of this report.