Ripple’s XRP explodes almost 60% – what’s behind the pump?

The past few months have been challenging for Ripple’s XRP owners . The cryptocurrency plummeted in price while the other top cryptocurrencies by market capitalization saw price growth that has not been seen in years.

Ripple’s XRP’s drop in price is due to the charges brought against Ripple Labs and two of its executives in December. The SEC’s charges include the sale of over $ 1 billion in unlicensed securities based on the sale of Ripple’s XRP. The SEC claims that Ripple’s XRP is a security – a designation that has not been assigned to the two major cryptocurrencies, Profit Secret and Ether.

That announcement resulted in a price drop of over 50 percent as many platforms using RippleNet and Ripple’s XRP ceased operations over these allegations. These platforms are not regulated by the SEC and want to stay that way.

As such, these allegations could bring them under US jurisdiction if they are involved in the sale of securities to users. Even regulated firms like Grayscale, the largest digital asset manager in the cryptocurrency space, reduced XRP holdings after this announcement.

Ripple is fighting back

Many stakeholders in the XRP ecosystem were extremely upset by these claims. Some filed petitions.

Some have turned against the SEC for waiting seven years after Ripple’s XRP launched to take action. Others sued platforms like Coinbase for allowing the unregistered sale of securities.

Aside from all of the drama surrounding these allegations in late 2020, Ripple responded legally to the allegations. In the filing, they alleged that the charges are based on „an unprecedented and ill-conceived legal theory – with no legal mandate or authorization from Congress“.

Ripple says XRP is not a security

The Ripple Labs legal team states that Ripple’s XRP is not a security. They justify this with the fact that “XRP performs a number of functions that differ from the functions of“ securities ”, as the law has understood this term for decades. For example, the token functions as a medium of exchange […] It is not a security and the SEC has no authority to regulate it as such ”.

Ripple Labs, Brad Garlinghouse, and Christian Larsen claim that since the token acts as a „currency,“ which is a means of storing and transferring value, the SEC has no jurisdiction over it as a security.

However, Ripple Labs and the other two defendants allegedly sold over $ 1 billion to Ripple’s XRP to fund their businesses – and for personal reasons. This has traditionally not been possible with a privately issued “currency”. For now, Ripple’s XRP will remain pending, but it should be very interesting to see how the SEC reacts.

However, the crypto community seems happy that Ripple is officially reacting – at least if the price can be an indication of it.

Mężczyzna z Wielkiej Brytanii oferuje miastu 72 miliony dolarów za pozwolenie na wykopanie odrzuconego Bitcoin Fortune

James Howells, pracownik IT z Wielkiej Brytanii, zaoferował radzie miejskiej Newport 72 miliony dolarów w zamian za pozwolenie na wykopanie dysku twardego, który wyrzucił w 2013 roku, na którym przechowywanych jest 7500 BTC.

Według The Telegraph Howells przypadkowo wyrzucił dysk twardy podczas sprzątania swojego domu

Jego fortuna Bitcoin została zarobiona poprzez wydobywanie z procesorem, kiedy wciąż było stosunkowo łatwo wydobywać flagową kryptowalutę.

Kiedy jego fortuna zaczęła być warta miliony, próbował odzyskać twardy dysk, ale rada miasta Newport nieustannie odrzucała jego prośby. Według tabloidu dziennika Newport South Wales Argus , złożył on teraz miastu ofertę wartą 25% funduszy w formie darowizny na pomoc w związku z COVID-19.

Przy obecnych cenach BTC przechowywane na dysku twardym jest warte prawie 300 milionów dolarów. Pracownik IT podobno powiedział, że potrzebuje tylko dostępu do zapisów na wysypisku, aby wiedzieć, gdzie szukać, i że zespół poszukiwawczy stworzy hermetyczne uszczelnienie, aby zapobiec uwalnianiu trujących gazów.

Komentując możliwość znalezienia funduszy, Howells powiedział, że „nie ma gwarancji”, że dysk twardy nadal będzie działał ze względu na środowisko, w którym się znajduje, ale dodał:

Obudowa zewnętrzna może być zardzewiała. Ale na dysku wewnętrznym, na którym przechowywane są dane, powinna istnieć duża szansa, że ​​nadal działa. Wierzę, że wciąż będzie szansa. Ale im dłużej to trwa, jest mniej prawdopodobne, że będzie to możliwe.

Urzędnicy sprzeciwiają się jednak, że wykopaliska wiążą się z zagrożeniami dla środowiska i że jeśli dysk twardy nie zostanie znaleziony, musieliby sami pokryć rachunek. Howells powiedział jednak, że jest gotów przekazać środki na rachunek powierniczy, aby pokryć koszty wykopalisk.

Analysts suspect start of Main phase

Buy Bitcoins? Analysts suspect start of Main phase

Bitcoin has seen a strong rally in recent weeks and today fittingly for the bullish 2021 outlook, the Bitcoin price has exploded by almost 12% to currently $32,687.

Analysts believe that Bitcoin’s main bull phase has now arrived. This comes despite some concerns shared months ago that the Cryptosoft cryptocurrency market was due for an overdone consolidation due to the pandemic and its impact on global markets.

BTC is in its main bull phase

According to crypto analyst Willy Woo, bitcoin is now in its main bull phase:

„If you are looking to get in to hoard bitcoin for the long term, don’t get in at the drop of a hat. You’re not going to sweat a few thousand dollars for a less than perfect entry when in a year it’s $100k, $200k, $300k… The main bull phase is here. The capital inflows are crazy.“

He cites in particular the incredible amount of capital inflows towards bitcoin at the moment. Technology analyst Kevin Rooke observed in December that the Grayscale Investments BTC Trust (GBTC) bought nearly 13,000 BTC off the market in a single day. He wrote on the matter:

„Bad news for BTC bears. Grayscale’s Bitcoin Trust just picked up 12,319 BTC in $GBTC in a single day. That’s more than the 11,512 BTC they added throughout last week when BTC broke its ATH.“

Will there be resets in bitcoin? Absolutely. Will bitcoin reach $100,000 or more? That’s hard to answer, but be aware that the price has risen extremely in the past and now big players like Microstrategy, PayPal, Fidelity and more are in the market buying up Bitcoin as a hedge to fiat currencies. To put it simply, there will be no more than 21 million Bitcoins.

Strong interest in Bitcoin

Confirming the feeling that Bitcoin is in a bull market, data shows that there is strong interest in the leading cryptocurrency.

Pantera Capital, a leading crypto asset fund, found that there is a large amount of retail demand for Bitcoin, as evidenced by PayPal’s crypto volumes. On this topic, the firm wrote:

When @PayPal went live, volume started exploding. The increase in itBit volume implies that within two months of going live, PayPal is already buying more than 100% of the new supply of bitcoins.#bitcoinshortage

– Dan Morehead (@dan_pantera) December 27, 2020

In the US, it is already possible to invest in Bitcoin directly via PayPal. In Europe, this will probably also be available towards the end of 2021. If you still want to safely invest in Bitcoin with PayPal, we recommend this guide: Buy Bitcoins with PayPal

Will central banks hold Bitcoin in 2021?

Alex Krüger has changed his mind about the adoption of bitcoin by the central bank (BC).

He posted a tweet about it, talking about adopting BTC over gold.

Krüger even sees a modest entry into the market as having a huge effect

Renowned cryptocurrency trader and founder of Aike Capital, Alex Krüger, tweeted on January 1 that the bitcoin-gold relationship needed a closer look.

Sooner or later central banks (CBs) will hold bitcoins , says Krüger. The reason, he says, has to do with gold and the way central banks treat it.

In a series of tweets, Krüger shows how the demand for gold has changed in 2020.

I changed my mind.

Major central banks will eventually hold #Bitcoin as a reserve asset.

So let’s explore what central bank demand for gold looks like .

Habits are hard to change

Krüger begins by showing that central bank demand for gold has remained stable for much of the past ten years. However, it dropped dramatically in 2020. It also draws attention to the fact that adding liquidity pushes up gold prices.

So who bought gold? Without going into detail on why CBs have reduced their gold consumption so much, Krüger points out that institutional investors dominated demand in 2020. Jewelry, on the other hand, has fallen, as demand is price sensitive. .