Ripple Labs and XRP have started the year full of news, good and bad as well. To begin with, we must say that the coin managed to earn over 56% since the last month, recovering in some way after the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Ripple. However, this might not be totally good news.
The total price increase percentage for XRP from the beginning of January till February 1 was over 221%, now mostly gone. This sudden upsurge was partly due to the legal response by Ripple Labs to the SEC, which officially denies the charges of XRP being a security instead of a currency, and provides reasons for it.
That’s not exactly winning the upcoming trial, but the community took it very well because it means that Ripple is fighting back the accusations. According to the document:
“Unless expressly admitted, all allegations set forth in the Complaint are denied. The Complaint filed by the SEC advances an unprecedented and ill-conceived legal theory — with neither statutory mandate nor congressional authorization (…) That theory ignores, among many other things, that XRP performs a number of functions that are distinct from the functions of “securities”, as the law has understood that term for decades.”
On the other hand, it’s presumed that XRP was also pump-and-dump material the last days. Apparently, several groups in Telegram and Reddit coordinated its thousands of members to buy the coin the last week and hold it till the beginning of February.
This way, they’d increased the XRP price for a while, until they sold it massively and the price went down again. So, from a high of $0.74, the currency quickly fell to $0.37 per unit.
More XRP news and recent events
A few days before the legal response and the shady pump-and-dump activities by some investors, we can mention that XRP received some legit good news. Pornhub, the adult entertainment platform, decided to include this currency as a payment method for their content in several countries.
This was probably because the company faced a ban from Visa and Mastercard last month, and now it’s unable to accept credit cards as a payment. Beyond the reasons, the new addition means that XRP can be potentially used now by over 120 million daily visitors in the adult webpage.
And not everybody is selling the coin. The famous KISS band co-founder, Gene “The Demon” Simmons, admitted via Twitter that he joined the recent buying fever towards Dogecoin (DOGE) and XRP. He didn’t give any specific reason, but that’d be probably because he’s supporting the protest movement started by WallStreetBets with GameStop.
Meanwhile, other exchanges have decided to suspend temporarily or definitely their XRP trades, due to the SEC lawsuit and the last pump-and-dump activities. Among them, we’ll find Coincheck and PrimeXBT.
On Alfacash, we decided to suspend for now the XRP trading only for the United States. Europe and other countries can still easily and securely trade XRP on our platform.
Featured Image by Miloslav Hamřík / Pixabay
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