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An old Ripple (XRP)trade controversy has once again emerged from the shadows. The crypto company has been recently accused of selling unregistered securities by one of its investors, Bradley Sostack. And this time, the topic has once again surfaced with a bellicose tweet of cryptocurrency analyst Tone Vays.
Vays states in his tweet that “[t]he SEC is bringing Thor’s Hammer… The next #Bitcoin Law Review is gonna be epic… Come at me $XRP Army “of the Brain Dead” your scam coin should never have existed #Ripple Corp!”
The famous crypto firm behind the XRP cryptoccurency Ripple has attracted quite some heat in the recent past when it was accused of the sale of unregistered securities to its clients. An amended complaint against Ripple has been filed by a group of XRP investors arguing that the tokens of the company are unregistered securities under the authority of the Securities and Exchange Commission (SEC).
The complaint, submitted on August 5, is the recent addition to a year-old legal case against Ripple, while this time the plaintiffs mention the recently released “Framework for ‘Investment Contract’ Digital Asset Analysis” from the SEC and seek to define XRP as unlawful unregistered securities under the framework.
The distinguished Bitcoin(BTC)trade supporter and cryptocurrency analyst Tone Vays has given his opinion on the matter, claiming that the XRP digital currency is a “SCAM.” According to him, the SEC will bring down “Thor’s Hammer” on the Ripple’s enterprise with the litigation.
In addition to this tweet, Vays promised to make the lawsuit a part of discussion in his podcast, “Bitcoin Law Review.” He further said on his YouTube channel that “Ripple will be the Enron of cryptocurrency industry.”
The new filing also claims that Ripple violated the false advertising and unfair competition laws of California by allegedly “blurring differences between Ripple’s business solutions and XRP to drive further demand,” and “paying exchanges to list XRP, limiting XRP’s supply to drive demand,” among other things.
Possible Long-Lasting Impact on the Cryptocurrency Price
Originally launched in 2012 as a subsequent iteration of Ripplepay, Ripple is a real-time gross settlement system (RTGS), a currency exchange and a remittance network. Using a common ledger managed by a network of independently validating servers that constantly compare transaction records, Ripple does not rely on the energy and computing of intensive proof-of-work as used by Bitcoin. Ripple is based on a shared public database that uses a consensus process between those validating servers to ensure integrity. Those validating servers may belong to anyone, from individuals to banks.
Any negative news is really going to put the Ripple project in a bad light, so this kind of news might be going to put a tooth in its price. Already, the XRP price has taken a hit by 40% in crypto exchange since November 2017, the hay days of the crypto world. This case could have a long effect on Ripple’s price, and this case could drag on for years and could have an impact on various considerations of XRP investors.