XRP? What the Dilly-o? (Shout out to Busta Rhymes)
XRP now firmly in the number 2 Crypto-Currency rejected off of our previous resistance level of 0.40881 found support at 0.33899 lost support and is now making it’s way back up to 0.33899 which will serve as resistance. If it breaks 0.33899 we expect to see XRP creep it’s way back up to 0.4088 however due to the current state of the overall market a rejection to 0.25491 is not outside the realm of possibilities.
Put all charts where my eyes can see, XRP buckwildin in the place to be
Now that the technicals are out of the way, what the heck is going on?
XRP is currently awaiting an SEC ruling whose outcome will determine if XRP is a security. We believe that the smart money is on the sidelines waiting for a ruling before jumping back on the XRP train. Seems that we are not alone in our concerns over this ruling, as CZ (Founder and CEO of Binance) seems to have the same concerns on his mind.
The court case may take years. But if XRP is ruled as a security, it would seriously hurt a lot of US users, and to a certain extent, other users around the world too. It certainly doesn't look like a security to me, but that's just one person's opinion.
— CZ Binance (@cz_binance) December 12, 2018
Recently, the SEC had weighed in on their opinion on the concept of decentralized currencies.
“When a store of value becomes truly decentralized – not one person or group of people control its supply or control trading or they have access to asymmetric information – we have said that that’s distributed and therefore you don’t have to re-register those transactions,” said SEC Chairman Jay Clayton at Consensus Invest in late November.
So, What are the DARN rules when analyzing tokens as securities?
According to Hinman, “Has the promoter raised an amount of funds in excess of what may be needed to establish a functional network, and, if so, has it indicated how those funds may be used to support the value of the tokens or to increase the value of the enterprise? Does the promoter continue to expend funds from proceeds or operations to enhance the functionality and/or value of the system within which the tokens operate?”
How does this apply to XRP?
In XRP’s own words
“The higher the price of XRP, the more money Ripple makes by selling XRP, the more money Ripple is worth, the more power Ripple has to incentivize partners, and so on,” ~ David Schwartz on December 27, 2017.