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As Ripple is often accused of the unreasonable monthly distribution of XRP in large numbers, its CTO David Schwartz provided his own vision on the issue and explained why it is necessary.
One of the most “unpopular battles” in the crypto universe is definitely one of Ripple. The efforts of the company to prove that XRP isn’t a security became a prolonged battle.
This exact battle could hold the key to XRP’s future and it has been held forth again. Be it as it may, there has been a lawsuit that may present Ripple as an issuer and the seller of the coin. Do not forget, XRP is one of the largest by market cap. At the time of writing the market cap of the coin was $10,33 billion and XRP price was $0,24. It is growing by 2.09% at the time of writing. Security or not, the investors will be the ones who will judge the final price.
However, analysts say that even a victory for Ripple in the case might not bring an end to its troubles with XRP.
CTO David Schwartz is convinced that Ripple’s strongest lawyers will take care of the lawsuit with their “strong words.”
Ripple company has been accused of running an illegal ICO. On August 5, 2019, some investors sent a complaint versus Ripple to the SEC. The report was allegedly giving clear proof that Ripple used the XRP token to bedeck big revenue. The report also says that the company is now engaged in selling its tokens in the exuberance of the need for an extra earning.
However, it’s also worth mentioning that Schwartz has his own opinion on the situation of selling coins. He explained that they used to have different strategies at different points of time. Originally, their idea was just to give XRP away to all the people and companies that had a desire to work with the XRP ledger. But there was no sense to continue implementing this approach as soon as XRP got a market price.
The next strategy presupposed selling XRP to the market with a view to having more coins in circulation. “But selling large amounts of XRP into the market in a small amount of time results in a decreasing price that makes XRP expensive for people to hold and thus not very useful for payments”, believes Schwartz. That’s why they have decided not to sell all the coins at once.
XRP Is Not a Security, Says Ripple
Let us also remind you that Ripple Labs filed a notice of motion on January 15, claiming XRP is not a security.
The respectable lawyers with these “best words” are Kathleen R. Hartnett and Damien J. Marshall, the members of the New York law firm – Boies Schiller Flexner LLP.
Perhaps their names sound already familiar with the crypto community. One of the founding members of this law firm is David Boies, one of the biggest attorneys in the USA. Boies is pretty famous for previously representing the U.S. government in an anti-trust lawsuit against Microsoft. Also, it is the same guy that is called a “superlawyer” in such cases as Bush v. Gore and the fight for gay marriage rights. Also, he doesn’t make any apologies for representing Harvey Weinstein and Theranos with zeal.
Chairman of the U.S. Commodity Futures Trading Commission (CFTC), Heath Tarbert, gave his thoughts about XRP being a security or commodity.
However, he hasn’t implicitly define whether he thinks if the XRP is a commodity. He said it could be claimed at the moment that XRP is a security or a commodity.
The chairman said:
“It’s unclear. Stay tuned I’d say. Part of the issue is that our jurisdiction we share with the SEC. If it’s a security, it falls under their jurisdiction. If it’s a commodity, it falls under ours.”
Be it as it may, from the company they are saying that XRP is not a security. Brad Garlinghouse, the CEO of Ripple was always saying that the Payment Company has no real control over the XRP’s price on the crypto market in spite of the selloffs.