Kvě 04

Ripple Slapped with Class Action Lawsuit from Disgruntled Investor

· May 4, 2018 · 6:00 pm

A San Diego-based law firm has filed a class action lawsuit against Ripple accusing the crypto firm of violating both state and federal securities law. The suit alleges that Ripple investors have incurred losses due to company’s sale of XRP tokens. There continues to be an ongoing debate as to whether XRP tokens are securities.


Details of the Ripple Lawsuit

Taylor-Copeland law is the name of the law firm handling the case. According to a scanned copy of the case filing, the Plaintiff is one Ryan Coffey. The suit lists four charges against the Defendants; Ripple Labs Inc., XRP II LLC, and Bradley Garlinghouse, the CEO of Ripple Labs.

The four charges allege that the Defendants have profited off the public by running a “never-ending coin offering.” The lawsuit also claims that XRP tokens “have all the hallmarks of a security” and calls for investors who have lost money to Ripple to join the class action.

In the summary brief as part of the lawsuit, the Defendants are accused of creating tokens “out of thin air.” Unlike Bitcoin and Ethereum, the total XRP supply was pre-mined at the inception of the token in 2013. The suit accuses the Defendants of using inflated metrics to deceive investors into thinking XRP tokens constitute a viable investment.

Ripple is also charged with knowingly offering a tokenized security to the public while not being registered by the SEC. Meanwhile, the case made by Taylor-Copeland also states that Ripple’s earnings come solely from the sale of the XRP tokens, which cost nothing to create. The lawsuit goes even further to claim that Defendants tried to bribe both Coinbase and Gemini, two major U.S.-based crypto exchange platforms.

The Plaintiff in the case, Ryan Coffey, purchased 650 XRP at $2.60 totaling at $1,690. Coffey reportedly bought the coins on January 6, 2018. Less than a fortnight later, Coffey sold the tokens for $1,105 incurring a loss of $551. A recent Weiss Ratings report described Ripple as a passable short-term investment vehicle that isn’t recommended as a long-term asset.

Despite being a cryptocurrency, Ripple is, in fact, a centralized enterprise, which makes it more vulnerable to regulatory clampdowns. Without any change to the Ripple economic model, investors who purchase the company’s tokens for the “long hodl” might end up incurring losses. XRP tokens are not shares. Thus, their profitability is based on their non-mandatory adoption by the banking sector.

The Ripple (XRP) Security Debate

The Ripple lawsuit has a sense of irony to it, given the case between the company and the R3 blockchain consortium. Furthermore, the case underscores the debate of whether XRP is a security or not.  The chief strategist for the company, Cory Johnson, recently declared that Ripple is not a security.

However, reports emanating from the SEC indicate that the Commission views the crypto as a security. Gary Gensler, ex-CFTC Chairman also recently identified the crypto as a “noncompliant security.” This characterization was due to the centralized distribution model employed by the company.

Whether there are any legal merits to the case against Ripple is left for the courts to decide. Preliminary reactions on online cryptocurrency forums indicate that many crypto followers believe the suit to be a frivolous one. Some have even poked fun at the Plaintiff for initiating a legal process that could cost thousands of dollars over a $551 loss.

Where do you stand on the lawsuit? Also, are XRP tokens securities? Let us know in the comment section below.


Image courtesy of Coinmarketcap, Shutterstock

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Bře 28

Uphold Adds Ripple (XRP) Buy / Sell Options to Its Digital Money Platform

· March 28, 2018 · 2:00 pm

Uphold, a cloud-based digital money platform enabling users to buy, hold, convert and transact various currencies, commodities, and cryptocurrencies, has now launched the trading of Ripple’s XRP.


Uphodl XRP

Uphold users are now able to purchase XRP directly from the website with no transaction fees for the first 5 million XRP purchased, and they may convert the cryptocurrency into seven other cryptocurrencies, 23 fiat currencies, and four precious metals.

In a press release published earlier today, Uphold CEO Adrian Steckel explained:

There has been huge demand for XRP, and Uphold is one of the first platforms to make XRP easily accessible.

This announcement does not come as a surprise. As noted by Yahoo Finance, the company previously received $57.5 million in funding from a former Ripple executive.

Uphold vs. Coinbase

Uphold – which also offers Bitcoin, Litecoin, Bitcoin Cash, Bitcoin Gold, Ethereum, Dash, and BAT – now represents one of the largest places to buy XRP.

Coinbase, the popular San Francisco-based cryptocurrency brokerage site, currently does not offer XRP, though rumors continue to swirl that Ripple’s cryptocurrency will soon be added to the platform. Coinbase, however, as thus far seemed somewhat impartial to the centralized cryptocurrency – though it has a policy in place in regards to not tipping its hand as to the next additions.

Coinbase has, however, announced its intention to support the ERC20 technical standard, which may imply the next additions to the platform will be altcoins built on Ethereum’s blockchain technology.

Unlike Coinbase, which acts as a more traditional cryptocurrency exchange, Uphold specializes in buying and converting different currencies, as well as safely storing them in a “cloud money vault.” The platform also allows its users to send currencies to other members internationally.

Uphold claims it currently holds $143.5 million in customer funds, most of which are comprised of US dollars and Bitcoin.

Uphold vs. Coinbase

A Good Choice?

The long-term investment value of Ripple has been a debate among experts.

Ripple co-founder Jeb McCaleb recently claimed investors should be concerned over the company’s centralized nature, noting how it is nearly impossible to run a node outside of Ripple Labs. Furthermore, the Ripple team runs the vast majority of the cryptocurrency’s nodes – despite claims that it operates with decentralized technology.

What do you think of Uphold’s addition of XRP to its platform? Do you think the cryptocurrency is a good investment, or are you concerned over its centralized nature? Let us know in the comments below!


Images courtesy of Uphold, AdobeStock

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Úno 15

Ripple Signs Major Deal with Saudia Arabia’s Central Bank

· February 15, 2018 · 10:30 am

Ripple, the third largest cryptocurrency by market cap, has been on a tear lately, and it has now signed a significant deal with Saudi Arabia’s central bank.


Ripple Rapidly Gaining Traction

Ripple continues to make inroads into the traditional financial sector. It has recently announced a massive deal with the UAE Exchange and a major partnership with Lianlian International. Additionally, Banco Santander is set to roll out Ripple payments in Q1, and just today came the news that Western Union will begin testing XRP transfers.

Ripple XRP

According to reports, Saudi Arabia’s central bank has penned a deal with the San Francisco-based cryptocurrency company, which aims to help banks in the oil-rich kingdom settle instantaneous cross-border payments using blockchain software. Specifically, Saudi Arabia will utilize xCurrent, Ripple’s enterprise software solution facilitating such payments with end-to-end tracking.

Saudi Arabia’s deal with the cryptocurrency company is the first such blockchain-utilizing pilot program launched by a central bank. Dilip Rao, Ripple’s global head of infrastructure innovation, says:

Central banks around the world are leaning into blockchain technology in recognition of how it can transform cross-border payments, resulting in lower barriers to trade and commerce for both corporates and consumers.

Saudi Arabia’s partnership with the virtual currency company comes after Gulf regulators have expressed concerns over Bitcoin and the cryptocurrency market’s lack of regulation. Thus, Ripple has, unsurprisingly, proven itself to be an attractive offer.

Ripple Shoots Up After AMEX Deal and Secret US Bank Meeting

Unlike Bitcoin and other cryptocurrencies that are largely founded on the premises of deregulation and decentralization, Ripple has openly marketed itself as a blockchain solution for traditional financial institutions. In turn, the cryptocurrency has long come under criticism for undermining what some consider to be the very foundations of cryptocurrency and blockchain technology.

Drawing further skepticism from investors is the fact that the vast majority of XRP tokens are owned by Ripple’s parent company, thus making it technically capable of regulating the price of said tokens.

XRP saw highs around $3.84 on January 4th but has since fallen as low as $0.59. It is currently trading at $1.12.

In December, UAE central bank governor Mubarak Rashed al-Mansouri also told Reuters that the central banks of both Saudi Arabia and the United Arab Emirates are working together in hopes of issuing a digital currency that would help facilitate cross-border transactions between the two countries.

What do you think of Ripple’s efforts to continually sign major deals with financial institutions? Do you think Ripple undermines cryptocurrency’s foundations? Let us know in the comments below!


Images courtesy of Shutterstock and Bitcoinist archives.

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Led 05

Coinbase Rejection Sees Ripple Drop 20% As Rumors Evaporate

· January 5, 2018 · 5:15 am

Ripple’s seemingly unstoppable bull run took a hit Thursday after US exchange Coinbase dispelled rumors it would add the asset.


‘No Plans For New Assets’

From highs above $3.60, the latest milestone in what has become the biggest-ever annual appreciation for a major cryptocurrency of around 35,000%, the platform’s XRP token swiftly fell by almost a fifth following the news.

As of press time Friday, XRP is correcting and is still down 9% versus USD and 15.4% against Bitcoin (BTC).

A blog post from Coinbase reads:

As of the date of this statement, we have made no decision to add additional assets to either GDAX or Coinbase. Any statement to the contrary is untrue and not authorized by the company.

Coinbase Treads Carefully

Rumors had previously circulated widely that XRP was due to debut on the largest exchange in the US. The veiled nod to those rumors is no doubt a prudent step as Coinbase is continuing to face major criticism and scrutiny after it emerged staff leaked information about Bitcoin Cash (BCH) being added to its books.

Meanwhile, the Coinbase blog post continued to say:

A committee of internal experts is responsible for determining whether and when new assets will be added to the platform in accordance with our framework.

The Coinbase Effect

It then added the following:

These individuals — and all employees at Coinbase — are subject to confidentiality and trading restrictions.

Ripple executives, like its investors, nonetheless remain tangibly confident about the asset’s prospects. As Bitcoinist reported Thursday, the token’s utility as a currency is a major boon to users and, thus, has a tremendous innate value, according to CEO Brad Garlinghouse.

Co-founder and chairman Chris Larsen, who owns a 37% stake of Ripple’s implied value of $320 billion, could well be the world’s ‘implied’ new richest person, with a fortune topping that of both Bill Gates and crypto-skeptic Warren Buffett.

XRP also found its way into traditionally Bitcoin-critical media outlet Russia Today’s cryptocurrency recommendations for 2018, along with Ethereum, Bitcoin Cash, Cardano, and Litecoin.

What do you think about Coinbase’s decision not to add Ripple? Let us know in the comments below!


Images courtesy of Pixabay and Bitcoinist archives.

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