RE:RE:Beaxy Exchange HaltOptional wrote: I can't see how the SEC can win the case against Ripple, who could have settled by now if they thought the SEC had a strong case.
Every other country views XRP as a currency. No investors would have thought that by buying XRP, they were purchasing shares in Ripple. It stinks that Jay Clayton initiated the suit against Ripple, and then left the Chair position the next day. This is in the name of protecting investors, but meanwhile wiping out 10's of Billions of investor value.
I believe that this was all a set-up, pre determined by both parties, as a way to get regulatory clarity, with legal precedence, and bring in a modern day "Howey test" for Crypto companies.
Anyone with the intestinal fortitude to buy XRP now, will likely see 100x gains this year.
Blockchain and digital currencies are the way of the future, meaning now.
Here are some youtube channels that have been following the XRP and Ripple story for years.
Digital Asset Investor, Digital Perspectives &
Kevin Cage
FYI, here is the SEC's claim against Ripple: https://www.sec.gov/litigation/complaints/2020/comp-pr2020-338.pdf
It's a very interesting read and very concise. I encourage all to take a look as it outlines the issue very well. The most interesting aspect is if the tokens aren't purchased to be used for something (e.g. store of value) they are purchased on the prospect of a speculative increase in price. That's the point here and most all tokens have this problem, they are speculative. The SEC's point is that proper disclosure for investors to make informaed decisions are required to eliminate fluff and scams by the IT fanboys and unlawful capital raisings. IMO it's not going to end there, the regulators around the world will clamp down hard on tokens in the years to come. That's a given.
It is very clear that they used the XRP as essentially options and granted them to employees and promoted that the XRP price would increase and it had value, demand, etc.
Sounds familiar? Ironically, a group of, here's the interesting part,
"Investors" are challenging the action and stating that it's not an investment and hence not a security - wait for it.......
The "Investors" claim that they lost significant value on
their investment in XRP as a result of the action and are seeking compensation for their investment losses. Right now it looks like XRP's investors are in for a long ride and will lose a significant portion of their investment speculating on XRP. BTW, the Investors claims doesn't help XRP's case, on the contrary, it basically reinforces the SEC's claims against Ripple XRP!
If they wanted to help, the best way was not to help. Basically the writ of mandamus will sink Ripple XRP either way. If it does get up then Ripple XRP is a security and not a currency. If the writ doesn't get up in court, the damage is done anyway.
I note the statement in the posted on this "This is in the name of protecting investors, but meanwhile wiping out 10's of Billions of investor value." Basically it confirms the case the SEC is making. Its an investment contract and therefore a security even under your own admission.
Ironically, Ripple XRP was advised of XRP being a security by their lawyers and chose to ignore it. The moral of the story here is that all these tokens are basically offered as securities (poorly at that and with no business model or fundamentals) and trying to avoid the regulations is a recipe for disaster. Also, all token issuers need to be fearful of their own actions, most are just running illegal scams. Saying things that clearly aren't true and most of all 'asymmetric information'. That's the whole reasons regulations were invented in the first place to protect against these unscrupulous people who are trying to defraud investors. All token issuers and investors need to heed the warning - get out now.
As for the organized nature of this action - highly doubtful. This investigation has been prepared over the last few years. They wouldn't issue a proceeding like this without an extended investigation. Furthermore, we now know what all those meetings between the regulators and executives of Ripple were about now. It wasn't the adoption of XRP by government, but preparation for a prosecution. They did a good job of keeping it quiet.
IMHO its all going to get regulated or shut down and there will not be any difference/benefit from tokens or existing capital markets. It will blow up like the Dot com era.
With increasingly negative outlook for 2021, the flight to quality will divert everyone to more secure and stable investments. It happens everytime there is a downturn, 2000, 2008, etc and it will happen again. Ripple may survive but it will be a fraction of what it is now, if at all.
We are going to see a return to fundamentals; dividends, revenue growth will be primary focus and
then capital gains, just like every other time in history where the market has turned.
Good Luck.