Mega Whale Moves 37M XRP Tokens to Bitstamp as Ripple vs. SEC Case Nears Conclusion
The XRP market is currently hot with activities due to recent events, not just due to a recent transfer of millions of XRP tokens by a mega whale, “BigSplash42,” to Bitstamp — a well-known CEX, but also due to mounting speculation surrounding the impending resolution of the long-standing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC).
Whale Activity and Legal Context
Whale Alert, a renowned blockchain tracking service, was the first to flag the huge movement of 37.39 million XRP tokens, valued at approximately $16.06 million. Such movements by whales—entities that hold large quantities of cryptocurrency—often lead to ‘ripples’ in the market. The transaction, which took place on July 7, 2024, saw these tokens move from an unidentified wallet to a prominent exchange, adding to the fuss about XRP’s price volatility.
— Whale Alert (@whale_alert) July 7, 2024
37,390,000 #XRP (16,064,836 USD) transferred from unknown wallet to #Bitstamphttps://t.co/qfCegLxPKI
While the exact reason for the transfer remains unknown, some industry insiders believe it could be a sign of whales positioning themselves for a potential post-lawsuit surge in the XRP price.
Meanwhile, in retrospect, the SEC filed a lawsuit against Ripple in December 2020, alleging that XRP was an unregistered security. The lawsuit has since cast a long shadow over the XRP market, causing uncertainty and hindering its growth.
However, there have been some positive developments for Ripple recently. On July 13, 2023, Judge Torres concluded that XRP is a commodity when sold to the general public. Her Summary Judgment stated that Ripple’s Institutional Sales of XRP constituted the unregistered offer and sale of investment contracts in violation of Section 5 of the Securities Act. This landmark decision, though a partial win, had a profound impact on the Ripple community, leading to a surge in XRP’s price by over 70% at the time and setting a precedent for other legal battles in the crypto space.
Moreover, it underscored the regulatory ambiguity that plagues the industry—a point Ripple has leveraged to its advantage, arguing that it did not act with ‘reckless disregard’ for the law given the unclear regulatory environment.
The Ripple vs. SEC Case Timeline
Fred Rispoli, an advocate for Ripple and its native token XRP, has provided insights into the possible end dates for the SEC vs. Ripple case.
According to Rispoli, the case could be resolved either by July 13 or 31. The former date holds particular significance because it marks the anniversary of the key ruling by Federal Court Judge Annalisa Torres last year.
Possible Implications
A win for Ripple could see XRP emerge from the legal battle stronger than ever, potentially leading to a significant price increase. Conversely, a loss for Ripple could severely hamper XRP’s growth prospects.
The coming months are likely to be filled with uncertainties for XRP holders. The outcome of the legal battle and any further movements by large holders will significantly influence the XRP price.
The whale’s move, however, suggests a shrinking bullish sentiment over the SEC case settlement as the crypto market faces a downturn. XRP is currently trading at $0.4355, showing a modest uptick of 0.68% in the last 24 hours at the time of writing.
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