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Behind XRP's prosecution by the SEC may be a major rectification of the entire currency circle?

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I believe that the SEC's prosecution this time will not only be fined, but with the new chairman about to take office, the fire during the Christmas period will be set.

Original author: Xiao Zhang talks about blockchain

Just yesterday, everyone was waiting for foreigners to celebrate the New Year When the market fell, Ripple, the parent company of XRP, was formally sued by the SEC. According to data from CoinGecko, the price of the currency was around US$0.27 before press time, a drop of 33.6% within 24 hours, and the global market value ranking slipped from No. 3 to No. 4.

XRP Behind being sued by the SEC may be a major rectification of the entire currency circle?

After this prosecution incident, we can see that the blockchain market is increasingly pursuing compliant development and will gradually abandon more For "air coins" and "altcoins" without any practical scenarios, Ripple's lawsuit is just the beginning.

I think that the turmoil in the cryptocurrency market next year will be the biggest in recent years, and it will also usher in a wave of some currencies that really have practical scenarios bull market.

Back to the prosecution incident, let us first look at the background of the SEC?

SEC (Securities and Exchange Commission, abbreviated as SEC). According to the "Securities Exchange Act of 1934", a special committee of the US federal government was established in that year to supervise the implementation of securities regulations. The committee is composed of five members, and the chairman is changed every five years and appointed by the President of the United States.

The current chairman, Jay Clayton, will leave on December 23, Eastern Time, which is today. It is not difficult to see that the details have some connection with Biden's taking office.

The key point of SEC's prosecution this time is (due to too many details, I will not list them here, and there is a slight difference compared with the original text The traces have been modified, but the original intention has not changed):

1. Since 2013, Ripple has continuously sold more than 14.6 billion XRP, in exchange for a total value of more than 1.38 billion U.S. dollars in cash or other consideration assets.

2. Ripple has never submitted a registration statement for XRP, and the two executives have the greatest control over XRP, and new XRP can only be obtained from them flow to the market.

3. The use of XRP is accused in the document that the purpose of this move is to sell XRP to as many speculators as possible.

4. Ripple boasted that XRP may be used by some professional institutions in the future, but now there are Ripple who exchange the currency to some partners, and the partners sell it to The situation in the secondary market. In the process, nearly $600 million went into the personal pockets of executives.

5. Ripple has admitted in non-public communications that the main reason people buy Ripple is as investment or speculation.

XRP being sued by the SEC may be against the entire A major rectification of the currency circle?

After SEX formally sued, SECRipple CEO Garlinghouse publicly responded that XRP is not a security. One of the reasons is that the market value of XRP is not related to Ripple's activities. It is related to other cryptocurrency market conditions.

From the beginning of the release, Garlinghouse publicly promised to make a significant and meaningful effort on XRP, which means that the value of XRP depends on Ripple company.

Throughout the issuance process, Ripple also made a lot of efforts to monitor, manage and influence the XRP trading market, including XRP trading price and trading volume, which Efforts include:

(1) use algorithms to determine the timing of the quantity and price of XRP sold to the market;

(2) Pay rewards to certain market makers if sales reach a certain volume level of XRP;

(3) Cooperate with good news, Pull disk synchronously.

On November 27th, I published an article. When Ripple followed NFT hotspots and skyrocketed to $0.7 last time, I said: From this time In terms of operation, the official pull is obvious. Now less than a month, it is facing a major crisis.

According to CoinGecko data, there are currently 6,072 digital currencies and 418 exchanges. It can be seen that there are many blockchain projects, but among them are really valuable and How many are completely decentralized?

I believe that the SEC’s prosecution this time will not only be fined, but with the new chairman about to take office, this The fire is set.

I predict that more institutions will intervene in the future, and may even form an alliance chain to formulate standards and gradually abandon these useless "virtual currency ".