Ripple Moves 1B XRP Amidst SEC Troubles

Despite ongoing legal battles with the SEC, Ripple Labs transfers XRP from its escrow account.

Robots transporting Ripples XRP tokens across the desert with a sandstorm brewing on the horizon. 
  • Despite the ongoing legal battles with the SEC, Ripple Labs continues to move XRP from its escrow account.
  • SEC Chair Gary Gensler’s recent comments on unregistered securities have been met with backlash.
  • The movement of XRP from the escrow account highlights Ripple’s commitment to the future of the asset.

Blockchain payment giant Ripple Labs has been transferring XRP from its escrow account despite the ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) over allegations of selling unregistered securities.

Ripple Labs Continues to Bet Big on Blockchain Technology

The ongoing legal battle has not stopped Ripple Labs from pursuing its business strategies. Ripple Labs recently obtained one billion XRP tokens valued at around $380 million from the escrow account in batches, including two transactions of 400 million XRPs, and an additional two of 100 million units each.

Ripple Labs remains optimistic about blockchain technology’s potential to transform the financial industry and is actively using XRP tokens to incentivize developers on the XRPL. The firm hopes to attract institutional financial partners interested in its RippleNet services. 

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Just yesterday, on February 28th, as revealed by on-chain data, Ripple sent 50 million XRP to an unknown wallet. This proactive approach to promoting and adopting the firm’s technology and services has helped Ripple Labs maintain a steady pace amid legal turmoil.

Ripple Labs Is Pushing Forward

The XRP community is disappointed as the ongoing lawsuit has impacted the asset’s performance, resulting in XRP not reaching a new all-time high alongside other cryptocurrencies in the 2021 bull run. Institutional investors have been reluctant to invest in XRP due to the lawsuit and the potential for negative regulatory consequences.

The recent comments made by SEC Chair Gary Gensler have only served to cause further uncertainty for the broader cryptocurrency industry. Gensler’s stance that every cryptocurrency, except for Bitcoin, is an unregistered security has sparked criticism and backlash from the community.

On the Flipside

  • While the ongoing lawsuit on XRP significantly hinders Ripple, XRP has faced multiple setbacks in recent years. For instance, Coinbase delisted XRP from its exchange in 2022, which had a notable impact on its market performance.
  • Gary Gensler is known for his tough stance on the cryptocurrency industry. He has made comments in the past, such as likening stablecoins pegged to the US dollar to “poker chips.”

Why You Should Care

Ripple’s continued movement of XRP from its escrow account despite the ongoing legal battle with the SEC has highlighted the company’s confidence in the future of XRP and its commitment to developing the XRPL and RippleNet services.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.