BitLord, one of the most prominent influencers on crypto Twitter, recently addressed the elephant in the room when it comes to Ripple's XRP. He claims that the third biggest cryptocurrency by market cap is, in fact, a security, something that Ripple vehemently tries to deny.
Ripple dump on the community to acquire real life business ✅— ฿ITLORD PUMP (@Crypto_Bitlord) November 26, 2019
They say they aren’t responsible for the price of $XRP but continue dumping.
You have no rights to the company OR @MoneyGram
How can we fix this? $XRP is a SECURITY @bgarlinghouse https://t.co/ARDQ3WMCpO
"How is this legal?"
During an interview with CNN, which took place back in September, Ripple CEO Brad Garlinghouse insisted that they couldn't control the price of the company's native token. Moreover, he pointed to the fact that Ripple was the most interested party in the success of XRP as its biggest holder.
However, BitLord is certain that Ripple dumps XRP on its community in order to finance the acquisition of real-life businesses. As reported by U.Today, the crypto behemoth recently completed its $50 mln investment obligation in old-school money transfer company MoneyGram. However, according to the naysayer, XRP holders do not have any rights to Ripple or MoneyGram.
He also questioned the legality of such actions, and crypto analyst Alex Krüger was quick to take a jab at XRP.
AFAIK it is not illegal to sell useless products.— Alex Krüger (@krugermacro) November 26, 2019
The big question
There is a pending class-action lawsuit against Ripple, which was filed by XRP investors who lost big due to the token's depreciating prices. The company's attempt to throw the suit out of the court didn't fare well.
Back in August, Garlinghouse addresses pervasive FUD, claiming that XRP was "clearly" not a security. The Financial Conduct Authority (FCA) classified XRP as an exchange token, but the US Securities and Exchange (SEC) is yet to voice its take on the matter.
Meanwhile, despite all legal questions, XRP continues to reach new milestones, recently shattering its daily transaction volume record.