In a recent discussion surrounding Ripple's ongoing lawsuit with the SEC, lawyer and digital asset enthusiast Bill Morgan shed some light on the potential fate of Ripple's XRP holdings. With the lawsuit drawing attention to Ripple's actions and the LBRY case serving as a catalyst, the XRP community has been eagerly debating the future of Ripple's vast amount of XRP tokens, which currently sit in escrow accounts.
There was even a talk about burning that entire amount, which was further made clear by a former director at Ripple, Matt Hamilton. However, the question arose: could the court impose a solution where Ripple would be allowed to retain the escrow, using the tokens only to meet demand and providing proof of such transactions?
Gamza KhanzadaevMorgan responded to the query, stating that Ripple had actually presented a solution in 2020. The company's approach involved selling XRP exclusively to ODL customers, focusing on fulfilling the demand within that specific use case. The lawyer noted that the demand for XRP in ODL transactions appeared to be steadily increasing, implying that this strategy was gaining momentum.
Addressing another concern raised within the XRP community, Morgan confirmed that the SEC did mention the escrow in its summary judgment motion. The SEC alleged that Ripple used the escrow account as a means of reinforcing the notion of a common enterprise associated with XRP and to bolster the token's price.
Amid ongoing discussions, Ripple's ownership of XRP continues to captivate attention. Although the fate of these tokens remains uncertain, enthusiasts in the XRP community, legal professionals and digital asset enthusiasts eagerly anticipate updates in the ongoing legal dispute between Ripple and the SEC. The resolution of this lawsuit will undoubtedly carry substantial consequences for Ripple, its XRP holdings and the wider cryptocurrency sector.
Tomiwabold Olajide
Dan Burgin
Alex Dovbnya
Vladislav Sopov