Ripple Versus Security Exchange Commission (SEC)
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
Reading the comments on yesterday’s decision in the SEC’s case against Ripple has been interesting. You would believe that this is the second coming of Satoshi if you read the cryptocurrency news websites.
To be frank, this is a dicey situation for cryptocurrency investors.
One big question that this stirs up is the question about the classification of the ripple as a financial instrument. Is Ripple a cryptocurrency or a security?
If it is a stock, Ripple (along with every other crypto company out there) should have registered it with the SEC. If it’s not a stock, everyone in the cryptocurrency business would be free to design new tokens, which would be advantageous overall.
The court’s verdict was that Ripple isn’t a stock when it is sold on exchanges. And that it only becomes a stock when sold to big investors.
For those seeking a clear regulatory ruling, this is disappointing.
We’re back where we were when we started, in my opinion. Therefore, why are investors going crazy and pushing the price of XRP higher?
Is it a Good Venture to Invest in Ripple?
We have faith in Ripple. One may even say that it would be the first global remittance network to employ blockchain technology to instantly and nearly free cross-border payments.
However, when the Securities Exchange Commission filed a lawsuit in 2020, it was difficult to declare the above.
The mind-boggling question on everyone’s mind is if it is safe for them to invest in Ripple since its price is Skyrocketing at the moment.
More Conflicts Are on the Way
The latest court verdict has been making waves for some time.
The SEC can first challenge the judgment, which cannot yet be quashed. (Of course, Ripple might also appeal the sections of the decision they disagree with.) Therefore, this will probably drag on for a while.
Also, the court ruled that Ripple was found guilty of selling a security that wasn’t registered to big investors. However, this point seems to be getting lost in the excitement of the moment.
Additionally, the major question one should ask when it comes to cryptocurrency investment isn’t whether or not the price of the token is going higher or lower. That will be the worst question anyone could ask in this respect.
Instead, we employ judgment and analysis to determine whether Ripple is a respectable business, managed by capable executives, with a sizable and expanding client base.
I understand why everyone is in a rage—after receiving months’ worth of unfavorable news from the SEC, this minor victory feels like a reprieve. On the crypto roller coaster, it’s simply another loop-de-loop, though.
As a crypto investor, one should desist from investing based on the Fear of Missing Out (FOMO), which is spreading and usually spreads like wildfire. Instead, it is advisable to invest in crypto projects with good prospects. Most importantly, as a cryptocurrency investor, one should invest on a long-term basis, say for 5 years or more.
More is coming concerning this latest ruling, but it does feel great to enjoy the little victory, no matter how small it may be.
