TL;DR
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News broke yesterday that Ripple (XRP) won its lawsuit against the SEC – proving in court that the XRP token is not a security when sold to the public.
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Although the judge ruled that when XRP was sold to institutions – it did indeed fit the description of a security…
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This means that crypto projects will think twice before selling most of their initial token supply to large institutional investors before going live to the public (which is a good thing).
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This new legal precedent means that tokens that function in a similar way to XRP could likely face the same ruling if/when the SEC tries to sue them.
Full story
You know those Maury and Jerry Springer scenes where one of the guests would be told:
“You… are… NOT the father!”
(At what point would they go on a rabid and frenzied victory lap around the studio?)
Yeah, well – that’s exactly what people in the crypto space are doing right now.
About 10 minutes before writing this, news broke that Ripple (XRP) won its lawsuit against the SEC – proving in court that the XRP token:
“…NO security!” (safety = a supply).
This means that the XRP token is not under the purview of the SEC (which would cripple it).
But there is a caveat.
XRP turned out not to be a security when it was sold to the public…
But the judge ruled that when XRP was sold to institutions – it did indeed fit the description of a security…
Which (oddly enough) is great for retail investors!
This means that crypto projects will think twice before selling most of their initial token supply to large institutional investors before going live to the public.
This should help prevent individual entities from buying super cheaply and then dumping all their holdings (and lowering the price) once a token is publicly available.
Anyway, you cut it – it’s good news!
And the price of the token is already cracking! It jumped about 25% in fifteen minutes: