Ripple’s token, XRP, is one of the hottest tokens in the cryptocurrency market. It has managed to maintain a favorable position among the top 10 altcoins over the years.One factor that may have influenced this was the accumulation of whales.
Major investors continue to believe in XRP’s potential even after the SEC’s 2020 litigation began. At the time, the Securities and Exchange Commission accused the company behind the altcoin of selling his XRP in the form of securities.
According to the SEC, Ripple illegally sold $1.3 billion in tokens.I didn’t register XRP with a fee for making that sale.
Shortly after the formal indictment, many cryptocurrency exchanges decided to remove XRP from their portfolios to avoid suffering lawsuits that were not favorable to Ripple and could adversely affect the business of the cryptocurrency platform. did. As a result, XRP lost much of its market cap.
However, at the time of writing, neither side has been able to prove its claims. Therefore, after 2020, the process has been protracted without a clear direction.
But in the last few months something different has happened. Large investors are accumulating XRP and putting it in their portfolios.
Why do whales keep accumulating XRP?
First, a big reason Whales is on XRP is the hope that Ripple will emerge as a big winner in the battle against XRP. SECThis is because the whole scenario shows better results for payment companies.
For example, one of the documents mentioned is a speech by former SEC Chairman William Hinman, the former Commissioner responsible for initiating the lawsuit against Ripple.
The speech includes comments on the legal status of Ethereum (ETH). Hinman stated that altcoins like Bitcoin (BTC) are not securities.
The big dilemma is that Hinman could have favored ETH.
Between 2017 and 2018, there were four scheduled meetings with representatives of market-leading altcoins.
Therefore, attorney John Deaton believes the Ethereum team had privileged access to the SEC. This was rejected for all other fintechs in the crypto market, so no other protocol in the blockchain market had it.
Additionally, Ripple’s general counsel said the SEC does not have an answer to the allegations in court. The blockchain firm said the commission was unable to prove the existence of an investment contract governing the defendants’ XRP offers and sales for the period from 2013 to 2020.
SEC is not the only reason for whale interest
Many countries around the world are focused on launching Central Bank Digital Currencies (CBDC). Results in recent months haven’t been the best, with India as an example launching a CBDC that didn’t please bankers, but XRP may be a major highlight in the space.
While many crypto market investors oppose governments, Ripple’s intention has always been to act in concert with rulers and support its technology in CBDCs.
According to Ripple CEO Brad Garlinghouse, the company has always aimed to work with governments and regulators. Entrepreneurs believe their companies can be used for the benefit and dissemination of technology.