Whales on the $XRP network have been accumulating the cryptocurrency even at a time in which the cryptocurrency’s price keeps on surging ahead of a potential ruling on the U.S. Securities and Exchange Commission’s lawsuit against Ripple and two of its executives.
According to blockchain analytics firm Santiment, the price ratio of XRP to the flagship cryptocurrency Bitcoin has hit a one-year high of 0.000025 on optimism surrounding a potential ruling in the case. Nevertheless, active shark and whale addresses holding between 1 million and 10 million XRP have maintained an ongoing accumulation trend that started in late 2020.
The ongoing accumulation trend has likely benefitted XRP sharks and whales, as data shows that the cryptocurrency has seen its price surge around 47% over the past 30 days as both Ripple and the SEC are looking for a ruling in their long-running legal battle through a so-called summary judgment, according to recently filed documents.
The filings suggest neither party wants the legal action to continue to a full trial. The SEC sued Ripple and two of its executives in 2020, alleging they sold unregistered securities when they issued $1.3 billion worth of XRP tokens. Ripple denies XRP is a security.
In the case, a major point of contention emerged over a speech from former senior SEC staffer Bill Hinman, who explained in 2018 that he didn’t consider top cryptocurrencies BTC and ETH to be securities. Ripple has been seeking to obtain documents and communications related to the speech, which the SEC has been trying to shield.
Ripple has recently argued that XRP tokens cannot be considered securities as there was no “investment contract” given to investors that outlined their rights or obligations. In a recent interview, Ripple CEO Brad Garlinghouse noted that the SEC has “lost its way.”
Earlier this year, Ripple’s CEO Brad Garlinghouse noted that he believed the company would prevail in its legal battle against the regulator.
As CryptoGlobe reported, Ripple settling the lawsuit could lead to an XRP supply shock, which presumably would lead to a price surge as demand would remain the same, while supply plunged. That’s according to legal expert and XRP supporter Jeremy Hogan, who has been following the case.
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