{"id":375711,"date":"2019-03-22T20:00:35","date_gmt":"2019-03-22T20:00:35","guid":{"rendered":"https:\/\/wncen.com\/?p=375711"},"modified":"2024-06-12T09:39:51","modified_gmt":"2024-06-12T09:39:51","slug":"it-will-take-another-year-to-know-if-ripples-xrp-is-a-security-or-not","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/it-will-take-another-year-to-know-if-ripples-xrp-is-a-security-or-not\/","title":{"rendered":"It Will Take Another Year to Know If Ripple’s XRP is a Security or Not"},"content":{"rendered":"

It will take more than a year to understand whether or not Ripple’s XRP is a securities asset<\/a>, according to Jake Chervinsky.<\/p>\n

The dispute and investigation lawyer, associated with a global law firm Kober & Kim, tweeted a long thread explaining the next possible course of actions in the ongoing federal lawsuit against Ripple Labs. He said that it took more than nine months for the\u00a0court to decide whether the case should remain in federal or state court, adding that the court proceedings had just started.<\/p>\n

“Even though we’ve been talking about the Ripple securities litigation for almost a year, the case basically just started this week, and it’ll be a very long time – another year or more – before anything truly interesting happens.”<\/p><\/blockquote>\n

The Lawsuit<\/h2>\n

In retrospective, Ripple Labs is battling a high-profile allegation over its relationship with XRP. The plaintiffs allege that the San Francisco-based firm sold them XRP after misleading them about its potential bullishness. However, during the 2018’s notorious crypto crash, XRP lost 84.5-percent of its value at the year close.<\/p>\n

https:\/\/www.youtube.com\/watch?v=hMfdBtoIDUE<\/p>\n

Ripple’s alleged control and command over XRP became the grounds for the lawsuit. Ripple reportedly created 100 million XRP tokens all at once and kept holding more than half of its supply in escrow. It would release it gradually, month-by-month, for growing Ripple’s blockchain network and XRP’s demand in the market. As such, plaintiffs argue that Ripple’s XRP was acting like a stock, which Ripple sold to raise funds for its operations.<\/p>\n

Long Schedules<\/h2>\n

Eventually, Ripple would deny allegations against it, which would mean a long stretch between one hearing and the next. Chervinsky noted that the blockchain firm was yet to file a substantive response which would set the course of the following legal events. They would include three phases of litigations (in order of action): appointing lead plaintiff, re-filing a consolidated complaint, and responding to the accusation.<\/p>\n

\n

0\/ The Ripple securities class action took a step forward this week, as the court set a schedule for roughly the next year of litigation.<\/p>\n

Here's an update on where the case stands, what's next, and when we'll answer the question that never dies: "is XRP a security?"<\/p>\n

Thread. \ud83d\udc47<\/p>\n

— Jake Chervinsky (@jchervinsky) March 22, 2019<\/a><\/p><\/blockquote>\n