“You are not virtual currency!”… Ripple at bay

“You are not virtual currency!”… Ripple at bay

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The price of Ripple, the world's three largest cryptocurrency, has fallen to 300 won. /Photo = Reuters

The price of Ripple, the world’s three largest cryptocurrency, has fallen to 300 won. /Photo = Reuters

The price of Ripple (XRP), the world’s three largest cryptocurrency (virtual currency), has fallen from 500 won to 300 won in just two days. Ripple is in an atmosphere that the aftermath that the US Securities and Exchange Commission (SEC) filed against as “stocks, not currency” continues. On the other hand, Bitcoin has continued to rise.

On the 21st, the SEC sued two co-founders who created Ripple for selling undocumented securities.

XRP was created and distributed by Ripple’s founders in 2012 and was designed as a cross-border payment method across the United States. Ripple co-founders protested that the SEC’s complaint was “basically wrong,” stating that XRP is not a security, but rather a currency. However, the SEC demanded a public answer on how Wall Street securities companies manage virtual assets and provided the necessary data for the Ripple complaint. It seems to be collecting.
According to Reuters, the SEC said in a statement on the 23rd that it also sought advice on how securities companies should regulate when they own and sell virtual financial products.

If the XRP is labeled “securities”, it means that the Ripple business is strongly regulated,’ CNBC explained.

According to the news of this complaint, Ripple, which remained at the 500 won range until the 22nd, fell to 200 won on the 24th. Since then, it showed a slight increase and recovered to the 300 won level, but it is not known when it will fall again.

When the formal proceedings between the two sides begin, it is expected to be the largest among the cryptocurrency-related lawsuits filed by the SEC. Last year, Ripple’s corporate value was estimated at 10 billion dollars (about 11 trillion won), WSJ said.

On the other hand, Bitcoin is on the rise every day. As of the afternoon of the 24th, it has continued to fluctuate between 25 million and 26 million won, maintaining a stable upward trend. With media reports that global institutional investors are interested in Bitcoin, it is spotlighted as a new asset investment destination.

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