LBC token, the native asset of the LBRY blockchain, suddenly jumped nearly 140% after the details of its Jan. 30 hearing surfaced online. Anders, a crypto enthusiast, shared a screenshot from CoinMarketCap showing the price increase.
I guess the market liked the LBRY meeting yesterday. pic.twitter.com/UNYlUpKzXr— Anders 🏁 (@X__Anderson) January 31, 2023
At the time of writing, the LBRY Credits (LBC) token is up 63% at $0.023, as some of its intraday gains had eased. Its trading volume also shot up 366% as traders jumped into the recent volatility.
Attorney Jeremy Hogan, who also noted the price increase on Twitter, said he agrees with a user's point of view that LBRY was pumping because the judge mentioned secondary market sales were outside of his ruling.
Details of Jan. 30 hearing
As reported earlier, LBRY had its final hearing on Jan. 30 as it sought clarity on users, secondary market sales and SEC remedies.
CryptoLaw founder John Deaton, who filed an amicus brief in the case as well as made an appearance at the hearing, shared the details of what transpired in court.
In a long thread of tweets, Deaton revealed that the judge made it crystal clear that his ruling did not apply to secondary sales of LBC.
He continued, "When you think about it, if the token itself were a security, then his ruling would apply to secondary sales because it would always be a security."
The founder of CryptoLaw stated the judge admitted he was frustrated with the SEC and pleaded with them to give clarity, but he said they will not.
Deaton pleaded with the judge to clarify his ruling because it was interpreted to include secondary sales.
The judge replied that he would make it very clear that his order does not include secondary sales. He then forced the SEC to agree that they were not pushing for that.
Deaton further pleaded, "Judge if you could also consider adding language that the token itself is not the security because, even though it goes without saying, it would provide additional clarity," or words to that effect.
LBRY lost in summary judgment to the SEC, as the judge ruled that the initial sales of LBC tokens constituted a securities offering.
While the company is happy with the recent turn of events at the hearing, it says it still does not consider it a major win until third parties stop being "terrified" of interacting with LBC tokens because of the SEC.