Ripple proponent defends XRP, slams Michael Saylor for saying Bitcoin is perfect money
- Ripple proponent Bill Morgan slams Michael Saylor for promoting Bitcoin as perfect money.
- XRP Ledger AMM has crossed a milestone of 20 million XRP tokens in Total Value Locked.
- XRP struggles to recover from its recent decline, trading at $0.47 on Monday.
Ripple (XRP) price battles to hold above $0.47 on Monday as proponent attorney Bill Morgan criticized Bitcoin maximalist Michael Saylor for his take on the altcoin. Saylor shared his bullish views on Bitcoin in a recent podcast interview, pushing his “Bitcoin is perfect money,” narrative.
Fred Kreuger, investor and crypto proponent supported Saylor’s stance and noted that Ripple, Ethereum, and Cardano are not finite. Morgan defended XRP and said the asset is finite.
Daily digest market movers: XRP is finite, says Bill Morgan
- Attorney Bill Morgan slammed Michael Saylor for his “Bitcoin is perfect money”.
- Bitcoin proponent Michael Saylor promotes the narrative that Bitcoin isfinite, while supporter and investor Fred Kreuger argues that Ripple, Ethereum and Cardano are not finite.
Saylor's new angle is that Bitcoin is perfect money.
— Fred Krueger (@dotkrueger) June 23, 2024
It's perfect in a physical sense. Like the discovery of a perfect semi-conductor. A constant, like the speed of light or absolute zero temperature.
What makes Bitcoin perfect is it's fixed supply. It's not just rare. It's…
- Saylor presented his narrative and bull case for Bitcoin in a recent podcast on YouTube.
- Morgan defended the altcoin and said that Ripple is not finite but XRP (the native token of the XRP Ledger) is finite due to burning, down from a total supply from 100 billion XRP tokens.
What a lie. You say Ripple is not finite but XRP is finite and in fact due to burning is decreasing down from 100 billion XRP. https://t.co/85ueesqC9h
— bill morgan (@Belisarius2020) June 23, 2024
- The entity running a validator on the XRP Ledger, behind the X handle @Vet_X0 dropped details on the rising value locked in the network. The total value of assets locked (TVL) in the ecosystem’s Automated Market Makers (AMM) has crossed 20 million XRP tokens.
Good Morning its a great day for great day !
— Vet ☠️ (@Vet_X0) June 23, 2024
The #XRP Ledger Automated Market Maker reached a milestone with an equivalent of 20M+ XRP in Total Value Locked!
TVL is increasing constantly now. pic.twitter.com/YJ3LEogKvF
- Rise in TVL is a sign of the rising relevance and utility of AMMs in the Ripple ecosystem.
- One issue that affects AMMs is the price. The validator notes that running the Automated Market Maker is more expensive than other popular AMMs, however, users can vote to reduce the fees manually.
- The validator proposes dynamic pricing and fees as the solution to the issue.
Correct, fees are still very high. Its more expensive than any other popular AMM. Issue is people have to vote to bring them down, manually, but that's overlooked unfortunately.
— Vet ☠️ (@Vet_X0) June 23, 2024
I hope once the AMM gets the Price Oracle integrated in the future we get dynamic pricing and fees
Technical analysis: XRP struggles to recover, dips to $0.47 on Monday
Ripple is in a state of decline, alongside other altcoins, while Bitcoin plunges under $62,000 on Monday. Bitcoin wipes out over 3% of its value on the day, taking altcoins down with it. XRP is trading at $0.4686, down nearly 2.5% on a daily basis.
Ripple is likely to extend losses by another 4% and touch support at $0.4508, the June 7 low. In case XRP continues to slip lower, it could find support at the April 13 low of $0.4188. This marks a drop of nearly 11% in Ripple’s price.
The Moving Average Convergence Divergence (MACD) momentum indicator supports the bearish thesis as the signal line crosses above the MACD line and red histogram bars appear below the neutral level.
XRP/USDT 1-day chart
On the other side, if Ripple closes above the upper boundary of the Fair Value Gap at $0.4841, it could invalidate the bearish thesis and push prices toward the next key resistance at $0.4955.
The key resistance level coincides with the 23.6% Fibonacci retracement of the decline between the March high of $0.7440 and the April 13 low of $0.4188.
SEC vs Ripple lawsuit FAQs
It depends on the transaction, according to a court ruling released on July 14: For institutional investors or over-the-counter sales, XRP is a security. For retail investors who bought the token via programmatic sales on exchanges, on-demand liquidity services and other platforms, XRP is not a security.
The United States Securities & Exchange Commission (SEC) accused Ripple and its executives of raising more than $1.3 billion through an unregistered asset offering of the XRP token. While the judge ruled that programmatic sales aren’t considered securities, sales of XRP tokens to institutional investors are indeed investment contracts. In this last case, Ripple did breach the US securities law and will need to keep litigating over the around $729 million it received under written contracts.
The ruling offers a partial win for both Ripple and the SEC, depending on what one looks at. Ripple gets a big win over the fact that programmatic sales aren’t considered securities, and this could bode well for the broader crypto sector as most of the assets eyed by the SEC’s crackdown are handled by decentralized entities that sold their tokens mostly to retail investors via exchange platforms, experts say. Still, the ruling doesn’t help much to answer the key question of what makes a digital asset a security, so it isn’t clear yet if this lawsuit will set precedent for other open cases that affect dozens of digital assets. Topics such as which is the right degree of decentralization to avoid the “security” label or where to draw the line between institutional and programmatic sales are likely to persist.
The SEC has stepped up its enforcement actions toward the blockchain and digital assets industry, filing charges against platforms such as Coinbase or Binance for allegedly violating the US Securities law. The SEC claims that the majority of crypto assets are securities and thus subject to strict regulation. While defendants can use parts of Ripple’s ruling in their favor, the SEC can also find reasons in it to keep its current strategy of regulation by enforcement.
The court decision is a partial summary judgment. The ruling can be appealed once a final judgment is issued or if the judge allows it before then. The case is in a pretrial phase, in which both Ripple and the SEC still have the chance to settle.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
