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The LBC token price has taken an indecisive turn as LBRY announces its move to wind down. The LBC token saw a massive spike on July 11 to $0.0124, but the gains quickly reversed.
On July 12, the LBC token saw a significant price drop as it printed a massive red candlestick. LBC plunged to lows of $0.00092 as the crypto market weighed the implications of the final judgment in the SEC v. LBRY lawsuit.
LBRY, reacting to the final ruling, says it is making plans to wind down in line with its promises to the court. LBRY told the court it "intends to dissolve as soon as possible" and is willing to divest itself of its remaining premined LBC.
Tomiwabold Olajide"After The final judgment in SEC v. LBRY is out. In accordance with the court's order and our promises, we expect to spend the next several months winding LBRY Inc. down entirely. As to what happens to LBRY from here, well, that's up to you," LBRY said in a tweet.
LBC token price uncertain despite minor victory in lawsuit
At the time of writing, LBC was down 1.77% in the last 24 hours to $0.0092 as the token's price failed to make a significant move.
The Securities and Exchange Commission (SEC) prevailed in summary judgment in its claim that LBRY conducted unregistered offerings of securities. Afterward, LBRY filed a motion to limit the SEC's remedies. On July 11, along with the final judgment, the court issued its decision on the remedies portion of the case.
The judge stated that the SEC has not argued in the LBRY case that third-party holders of LBC could violate the injunction merely by purchasing or selling LBC. He added that the SEC expressly stated that it "is not seeking an order prohibiting all third parties from buying or selling LBC." Ripple CTO David Schwartz thinks this is still a victory.
As observed by legal experts in the XRP community, the judge did not touch on secondary market sales. CryptoLaw founder John Deaton explains why: the specific issue was not litigated, and he believes in exercising judicial restraint.
The judge stated, "I take no position on whether the registration requirement applies to secondary market offerings of LBC by persons or entities not subject to the injunction."
Yuri Molchan
Dan Burgin
U.Today Editorial Team
Vladislav Sopov