Crypto whales accumulate XRP as the Ripple-SEC case nears end

YEREVAN (CoinChapter.com) — The ongoing controversial court case between Ripple and the United States Securities and Exchange Commission (SEC) continues to attract the attention of major crypto players and enthusiasts. This is despite the extended crypto winter and the recent embarrassing crash of Sam Bankman-Fried’s crypto empire, including his exchange FTX and his trading firm Alameda Research. The price of the XRP token looks to recover amid positive developments that may favor the company. Ripple Ledger issued XRP in 2012.

For the unacquainted, the SEC sued Ripple in December 2020 over allegations that the company has illegally sold over $1.3 billion worth of unregistered security in the form of the XRP token.

XRP lawsuit update. Judgment on Ripple vs SEC soon?

The possible date of the final verdict in the Ripple Vs SEC case has been a cause of much speculation. Several major players in the industry, along with the legal teams involved in the case, have stipulated on the matter. 

Such discussions and a possible Ripple victory have also impacted the price of XRP. 

On December 15, after both parties made their final submissions in court, Cardano (ADA) chief Charles Hoskinson gave his two cents on the matter. According to the Input-Output Global co-founder, the case could be settled by December 15. This, he predicted, would have devastating consequences. 

“I heard rumors that the Ripple case will be settled on December 15, and that could have catastrophic implications for the industry one way or the other… Regardless… it’s a decentralized ecosystem that you guys control. The United States of America doesn’t get to say that Cardano lives or dies;… that’s the point of a decentralized ecosystem,” 

Hoskinson said in a video message. 

Not only did the XRP lawsuit not end on his speculated date, but Hoskinson also faced backlash from the community. Fans of the token accused him of being a liar and colluding with regulators by calling XRP as security. 

In a subsequent video message, Charles Hoskinson clarified that he has been misquoted and that he does not believe XRP is a security, as alleged by the SEC. Moreover, he announced that he will not discuss XRP ever again, including after the conclusion of the ongoing case. For his decision, the Cardano (ADA) chief cited ‘vicious’ attacks by the token’s fans. 

Meanwhile, John Deaton, the pro-XRP lawyer, has predicted that the case will not have an outcome until April or May 2023. 

Recommended: XRP near a break as the rumors of SEC vs Ripple settlement intensify

Whales accumulate XRP against the backdrop of the Ripple-SEC case 

The recent price correction and expectations of a Ripple victory against the SEC have made XRP a preferred investment among traders. Several whales have jumped at the opportunity to accumulate more tokens. 

According to market intelligence platform Sentiment, XRP whale and shark addresses holding between 1 million to 10 million tokens reached1,617 as of December 21, 2022. 

Such accumulations by large whales could create a supply squeeze, resulting in positive price action. However, it comes with risks. Major buyers hope to profit if the Securities and Exchange Commission (SEC) loses the cases or settles with Ripple, agreeing not to classify the token as a security. 

Any rally could cause the whales to dump their holdings for short-term profits, causing the token to the tank to new lows. 

The XRP price, meanwhile, continues to print red charts. As CoinMarketCap indicates, the token has lost over 115% in the past 7 days. At the time of writing, it trades at $0.3435, down from $0.3867 a week ago. 

However, XRP price predictions by experts suggest that the token may rebound in the coming weeks. These speculations come amid the fallout from the XRP collapse and Gensler’s involvement. 

Ripple CEO slams SEC Chief Gary Gensler

On Tuesday, December 20, 2021, Ripple CEO Brad Garlinghouse ramped up his attack on the Securities and Exchange Commission. 

Attacking SEC Chief and archenemy Gary Gensler, Garlinghouse called the fact that Gensler had met former FTX CEO Sam Bankman-Fried on multiple occasions before the exchange’s collapse “ridiculous and frankly shameful”. 

The development has given hope to the XRP community, indicating that the SEC’s case could perhaps become weaker because of the romance with Fried. 

Moreover, others expect Gensler to leave the SEC in 2023, a development that the crypto community will undoubtedly welcome. 

However, while Garlinghouse attacks the SEC, his company continues to face backlash from its counterparts.

Earlier this year, Ethereum (ETH) co-founder Vitalik Buterin slammed XRP, calling it “completely centralized”. This attack on the network did not go unnoticed. Ripple CTO David Schwartz took to Twitter to reply to his allegations. 

“All this time and he still doesn’t understand, or is pretending not to understand, that Ripple is a company and XRP is a digital asset. He thinks XRP can say things!” 

he hit back. 

As the XRP lawsuit continues to draw attention, the community will hope to see the token’s price rally in the weeks to come.