XRP Is a Security That Allows Ripple to Acquire Businesses: Crypto Influencer

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Tue, 11/26/2019 - 18:53
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    Crypto investor BitLord puts Ripple on blast for "dumping" XRP on their community, claiming that the token is a security

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.

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"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. 

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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.     

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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