The fourth-largest cryptocurrency in market capitalization, Ripple, jumped 45% a day as it fought back against the Securities and Exchange Commission (SEC).
On the 31st of the global cryptocurrency market relay site’CoinMarketCap’, Ripple is trading at $0.4227 (about 472 won), a 45.05% increase from the previous day at 3:40 pm. Ripple, which was trading at 0.2221 dollars (about 248 won) on the 1st, jumped more than 90% in a month.
Ripple is a cryptocurrency created in 2012 and was designed to be a cross-border payment method. With these characteristics, Ripple quickly gathered investors from Korea. According to last year’s audit report by Bithumb and Coinone, domestic investors as of 2019 were the most buying Ripple among cryptocurrencies.
The problem is when the US SEC sued Ripple co-founders Brad Garlinghouse and Chris Larson in November of last year for’selling unregistered securities’. At the time, the SEC pointed out that they illegally collected more than $1.3 billion (about 1,452.7 billion won) by selling Ripple, an unregistered securities. Ripple was evaluated as a stock-like securities, not currency.
At the time, SEC Executive Director Stefan Abakian warned in a statement that “Ripple did not fulfill its obligations to disclose its business properly,” and “may threaten the protection of important participants in our robust open market system.”
Ripple co-founders immediately refuted the SEC complaint, saying that it was “basically wrong in terms of law and facts.” They stressed that “Ripple is a currency and has no obligation to be registered as an investment contract.”
However, as Ripple was tagged as’securities’, there was growing concern that the business would be subject to strong regulations. In November of last year, Ripple plunged more than 40% in one day as investors sold off.
Ripple fought back on the 29th (local time) by filing the first official response to the SEC lawsuit. As a result of this, ripple is rising by more than 45% compared to the previous day.
Ripple said in a notice, “Ripple is a cryptocurrency, and no country classifies Ripple as a securities. Ripple has not even initiated a cryptocurrency disclosure (ICO).” And will fight to restore market order and protect investors.”