Ripple update: 1 billion XRP transfer, SEC could payback $125 million to Ripple if appeal fails
- Ripple unlocked 1 billion XRP from its escrow account on September 1, raising concerns among XRP holders.
- Pro-crypto attorney Fred Rispoli asked securities lawyers whether. SEC would pay $125 million and statutory interest to Ripple if appeal fails.
- XRP dips to $0.55, erases 1.70% value on Sunday.
Ripple unlocked a large volume of XRP tokens on September 1. The transfer was tracked by Whale Alerts and XRP traders pondered on the impact of the large volume unlock.
XRP is currently faced with mounting selling pressure and slipped to $0.55 on Sunday.
What if SEC loses their appeal in Ripple lawsuit
Pro-crypto attorney Fred Rispoli asked a key question to securities lawyers in a recent tweet on X. Rispoli asked whether the SEC would have to pay back the payment remittance firm’s $125 million fine alongwith statutory interest.
It remains unclear whether the regulator will choose to appeal the ruling in the lawsuit. In the final ruling, Judge Analisa Torres upheld the ruling on XRP’s security status.
On the odds of an #SECvsRipple appeal, can any securities lawyers answer this question for me:
— Fred Rispoli (@freddyriz) August 26, 2024
If there is an appeal and if @ripple wins on every issue over the SEC, aside from returning the $125M penalty to Ripple, does the SEC have to pay statutory interest on that?
Ripple’s 1 billion XRP unlock
Ripple released 1 billion XRP tokens through its escrow process. The transaction took place in three phases, 500 million, 200 million and 300 million XRP tokens were released. XRP price erased nearly 1.70% of its value as traders digested the news of the transfers.
On-chain data shows Ripple’s active addresses climbed nearly 17% in a single day on September 1. When combined with the decline in exchange supply, it implies active addresses moved XRP off exchange wallets. This supports a bullish thesis for the altcoin.
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XRP supply on exchanges and active addresses
At the time of writing, XRP trades at $0.55.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
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.
