XRP Price Jumps, While Ripple Is Making Big Moves in SEC Lawsuit
The price of XRP, soared in the last 24 hours to hit $1.22. At the same time Ripple filed a letter to US Magistrate Judge Netburn calling out the SEC for negligence.
XRP’s rise occurred after Ripple made big moves this week in the tenth month of its lawsuit battle against the United States Securities and Exchange Commission (SEC).
Since the lawsuit began, December 21, 2020, Ripple has been defending its business practice against SEC in a legal battle. The SEC accuse that Ripple made $1.38 billion by selling XRP as an unregistered security, which Ripple denies saying that these sales should not be considered securities offerings.
On Thursday, Ripple dropped a bomb by filing a letter to US Magistrate Judge Netburn calling out the SEC for negligence in its handling of the case after Ripple received barely any answers to the 30,000 Requests for Admission (RFAs) it has requested from the SEC since the case began.
RFAs are “yes or no” questions that are meant to move the lawsuit along faster by resolving matters open to interpretation in the case.
The SEC called the RFAs “abusive, unreasonable, and oppressive” and said that it was overwhelmed by the sheer number of them, arguing that it has taken over 100 hours to respond to about 254 RFAs already.
According to SEC, answering one RFA takes about 24 minutes in order to give the right answer as these answers can be used against them in court.
In Thursday’s letter to the judge, Ripple said that the $1.38 billion ‘disgorgement’ (the return of any “ill-gotten gains”) the SEC seeks is from contracts that the SEC has not thoroughly reviewed.
Ripple made another big move against the SEC this week. They brought in a 2018 speech from the former director of the SEC’s Division of Corporate Finance, Bill Hinman.
#XRPCommunnity#SECGov v. #Ripple#XRP BREAKING: 1/3 Judge Netburn Orders the SEC to submit for in camera review the two documents related to the SEC's meetings with law firms and the email chain concerning discussions with a third party who received guidance from the SEC pic.twitter.com/zbjDi7HKYJ
In the speech, Bill Hinman said that Ethereum was not a security. The SEC response was that this was Hinman’s personal opinion, but Ripple’s defense says that it has seen an email chain to a third party in the SEC’s privilege log which reveals that Hinman’s speech reflected SEC policy.
On Friday, Judge Sarah Netburn ruled in favor of Ripple and will include the email chain in her review. It is unknown when the outcome will be decided.
XRPs overnight price performance indicates growing confidence this week that Ripple is weathering the legal storm.
XRP/USD Source: CoinMarketCap
Santiment Looks Into On-Chain Metrics of XRP
In the latest edition of Santiment Insights, the analytics firm looks at XRP’s social volume metrics. Discussions involving the sixth-largest crypto asset all over the internet have been pretty quiet even after the coin’s rise from about $0.85 in late September to its current price of $1.15.
“XRP’s social volume saw an uptick, but nothing too crazy like what we observed back in April, where [its] price was parabolic and everyone was just crazy over XRP.
This lack of interest from the crowd is healthy for now and more so when price keeps inching upwards and social volume remains low, suggesting perhaps the crowd are in disbelief.”
Though XRP’s number of social mentions is down, the firm says that its network has seen a massive uptick in daily active addresses since bottoming out in late July, indicating that investors are likely finding real-world use cases for the altcoin.
“This surge of users against a relatively quiet price action is suggesting that it’s likely not speculators but actual deployment of users on the network for whatever use-case there is out there at the moment…
A good part of XRP’s Daily Active Addresses is probably stemming from the increase in new participants as we can observe in the network growth metric. This sustained uptrend so far is generally a healthy sign for what’s to come.”
MVRV 7D metric is calculated by dividing XRP’s market value by its realized value. According to the Santiment, the metric suggests that XRP has more room to grow in the short term.
“XRP’s MVRV 7D which measures the short-term profit/loss of holders is showing that we still have a tiny room before we enter into the danger zone, where we usually see a local top forming (short-term).”
