SNEAK PEEK
- Ripple faces a delicate balance amid ongoing SEC litigation.
- The XRP Ledger Foundation’s operational capabilities are questioned.
- Ripple’s actions could significantly impact the broader crypto market.
In an entanglement with potential market ramifications, blockchain company Ripple could find itself in a catch-22 situation. This assertion was recently discussed by Matt Hamilton, a notable figure in the crypto community, in an intriguing Twitter thread. Hamilton highlighted the delicate balance Ripple must maintain, particularly its ongoing litigation with the SEC.
I think Ripple are in a tough situation as no matter what they do, there could be problems. If they fund too much then that could be seen as influencing the market and probably not good with the SEC case.
— Matt Hamilton (@HammerToe) July 6, 2023
As per sources, Ripple’s predicament is one of delicate equilibrium. Consequently, its next move could alleviate or compound its current difficulties. Hamilton explained that should Ripple over-fund, it could be perceived as market manipulation, a scenario unlikely to find favor amidst their ongoing SEC lawsuit.
Moreover, Hamilton brought up the XRP Ledger Foundation (XRPLF), originally intended to become an independently functioning entity with its elected board of directors. He, however, pointed out that, to the best of his knowledge, this transition never occurred. He doubted whether the XRPLF published financial reports or shared updates on their proposed plans.
So Ripple couldn’t even donate a big chunk to the XRPLF as I think that would draw the XRPLF into the Ripple/SEC mess. And I don’t think the XRPLF could even operationally use it anyway.
— Matt Hamilton (@HammerToe) July 6, 2023
On the other hand, the idea of Ripple donating a substantial sum to the XRPLF also surfaced. However, Hamilton conjectured that this action could drag the XRPLF into the ongoing legal tussle between Ripple and the SEC. Further, he doubted the operational capabilities of the XRPLF to utilize such a donation effectively.
In response, Jesse Hynes, another prominent voice in the crypto industry, presented a contrasting viewpoint. Hynes argued that Ripple could donate any amount of XRP to any foundation without influencing the SEC lawsuit or XRP’s security status.
Hamilton responded by acknowledging that his perspective isn’t rooted in legal expertise. He clarified that his opinions were based on his discussions with the XRPLF.
In conclusion, Ripple’s path forward is fraught with potential pitfalls, highlighting the often intricate dance between blockchain companies and regulatory authorities. What ripple effects this will have on the broader crypto market remains to be seen.
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- Source: https://investorbites.com/hamiltons-take-on-ripples-sec-predicament/
