Dogecoin Dumped, Tron Dumped, Now XRP Doubles And Dumps
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As coordinated price pumping campaigns keep spreading, the price of XRP has doubled in the past two days and then dived, following in the footsteps of two other recently pumped coins. (Updated at 12:00 PM UTC with a response from Ripple. Updated at 16:00 UTC with the latest price data. Updated at 16:26 UTC with a new comment by Stephen Palley.)
Source: Adobe/zilvergolf
On Saturday, XRP was trading at USD 0.282 before the rally intensified and pushed the price to USD 0.734 on Monday morning. And then, it crashed by more than 40%. At the time of writing, it trades at USD 0.414 and is down by 8.5% in a day, trimming its weekly gains to 51%.
Also, XRP is back as the 4th (was the 3rd earlier today) largest cryptoasset by market capitalization, after it crashed due to a regulatory crackdown in the US.
XRP price chart:
Source: coingecko.com
And the cycle of new bag holders have been born.
— shaquille o'atmeal (@crypt0e) February 1, 2021
The price was rallying as coordinated pumping campaigns on platforms such as Reddit and Telegram were working on repeating the dogecoin (DOGE) rally.
For example, at least two Telegram groups (t.me/pumpxrp and t.me/pumpxrpofficial) with over 279,000 subscribers in total are now solely focused on the XRP pump, while, on Reddit, r/SatoshiStreetBets (219,000 subscribers), were still trying to push DOGE alongside XRP.
Things are out of control.
— @jason (@Jason) January 31, 2021
Imagine a shady company gets walloped with an SEC lawsuit, which carries with it risk of ruin, and their crypto coin goes UP 60%?!?!?
What are you people thinking!??!
XRP is a disaster is clearly going to zero… pending some miracle. https://t.co/Lf2w7GXr5B
It pains me to say this….it really does…but it looks like the hot ball of money that pumped $DOGE has started to move into $XRP.$XRP is up 20% in the last 2 hours while the rest of the market is flat. pic.twitter.com/ck3ityU7rd
— Luke Martin (@VentureCoinist) January 29, 2021
It looks like, history was a lesson again, and XRP repeated the path of recently pumped DOGE and tron (TRX). TRX got some attention in the r/wallstreetbets subreddit, with 7.7m users, responsible for the GameStop (GME) pump last month, after Tron’s Justin Sun pledged to spend USD 1m on GME shares.
Today, DOGE is down almost 50% since its all-time high reached on January 29. However, in the past 24 hours, it’s up by 41% again, trading at USD 0.039.
DOGE price chart:
Source: coingecko.com
Meanwhile, TRX dropped more than 20% since its sharp spike this past Friday, trading at USD 0.0323. The price is up by almost 3% in a day.
TRX price chart:
Source: coingecko.com
At the same time bitcoin (BTC), trades at USD 33,496 and is up by 2.6% in a day, while ethereum (ETH) increased by 1%, to USD 1,314.
Preliminary response
Meanwhile, this past Friday, XRP-affiliated Ripple announced its preliminary legal response to the US Securities and Exchange Commission (SEC)’s complaint.
According to a summary provided by Stuart Alderoty, General Counsel at Ripple, XRP is not an investment contract, because:
- “XRP is a virtual currency and thus, outside the SEC’s jurisdiction.”
- “Ripple has never entered a contract for an investment with any holders of XRP.”
- “Ripple never held an ICO, never offered future tokens to raise money and has no relationship with the vast majority of XRP holders.”
- “Holding XRP does not mean a person receives a portion of Ripple’s revenue or profits.”
- “Ripple’s XRP sales amounted to far less than 1% of the massive XRP market that has grown over the last 8 years.”
- “The XRP Ledger, on which XRP actually moves, is completely decentralized. The SEC ignores the economic reality of an XRP transaction.”
- “Ripple’s XRP holdings do not create an investment contract any more than DeBeers holdings convert diamonds into securities.”
Also, Alderoty claims that “the SEC is out of step domestically and globally” because “the Department of Justice and FinCEN determined in 2015 and 2020 that XRP is a virtual currency and have since regulated it as such” and “the UK’s Financial Conduct Authority, and regulators in Singapore and Japan have concluded XRP is a virtual currency or a crypto asset, and not a security.” (Learn more: Fact-checking Ripple’s Claim that ‘Many G20 Gov’ts’ Call XRP a ‘Currency’)
The counsel also claims that “there is no principled distinction between XRP’s current function and that of BTC or ETH,” and that “the complaint filed by the SEC is full of cherry-picked quotes taken out of context, and draws conclusions that are unsupported by both the facts and the law.”
This is how some of the crypto lawyers reacted to the statements above:
https://www.twitter.com/prestonjbyrne/status/1355302028424179712
“I know I was going 96 mph in a 55 but tit would have been legal in Germany”
— Palley (@stephendpalley) January 29, 2021
case should settle after motion practice, maybe with an ability to allow trading to commence again in US. SEC probably not entirely deaf to impact on US buyers, nor should it be (whatever one thinks of the company or its head honchos)
— Palley (@stephendpalley) February 1, 2021
#Ripple's argument that it is unfair for #XRP to be deemed a security while ETH and BTC aren't has been beat to death by them…if you want to know what "sufficiently decentralized" means, look at Ripple's current structure and how it raises money. That is what it is not.
— Eric Hess (@hess_legal) January 29, 2021
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