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The virtual currency XRP, owned by Ripple, has been attracting attention recently due to legal developments in a lawsuit with the U.S. Securities and Exchange Commission.
However, a widely followed cryptocurrency expert has been outraged by several events in the XRP ecosystem and has vowed never to touch cryptocurrencies again.
XRP price trends of concern amid regulatory uncertainty
In a recent post on X, Elite Crypto stated that the price of XRP is trading like a stablecoin due to stagnant price movements over the past two years. Experts noted in the attached chart that XRP has remained within a certain range over this period.
Founded in 2012, XRP is currently the seventh largest cryptocurrency by market capitalization, and not too long ago it held a steady position within the top three. However, cryptocurrencies have been under bearish pressure since the SEC filed a $1.3 billion lawsuit in 2020. The lack of legal and regulatory clarity about whether XRP qualifies as an unregistered security is undoubtedly weighing on the price.
But last year, Ripple scored a clear victory against the SEC when a judge ruled that programmatic sales of XRP to retail investors were not securities. And in August, a New York court ordered a fintech company to pay a $125 million fine over XRP trading that violated securities laws. The SEC had sought a more substantial $2 billion judgment.
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Nearly four years later, the impact of Ripple’s legal battle on the industry as a whole is growing as the case moves to the Second Circuit Court of Appeals. To the chagrin of XRP holders, the SEC appears to want to leave a cloud of uncertainty over the cryptocurrency with its appeal.
Ripple executive chairman donates millions of dollars in XRP to Harris
Another reason why Elite Crypto is furious is the news that Ripple co-founder Chris Larsen donated $10 million in XRP to boost Kamala Harris’ US presidential campaign.
The expert emphasized that he is bullish on Harris’ Republican rival Donald Trump and bearish on XRP. This means that Elite Crypto is wary of the Biden-Harris administration’s anti-crypto stance and is therefore furious about Larsen’s XRP donation to Harris.
Notably, Elite Crypto wasn’t the only one dissatisfied with Larsen’s huge contribution. Some have speculated that the Democratic candidate could liquidate Larsen’s crypto donations in full, impacting existing XRP investors.
As a case in point, one commentator on X said:
“The narrative of “Ripple dumping XRP to holders” has now become “Kamala dumping XRP to holders”… I absolutely respect your right to donate and vote for anyone, but my views on this will not go well with the XRP community. ”
In a nutshell, XRP’s slow growth over the past two years and Mr. Larsen’s controversial donation are the reasons behind Elite Crypto’s decision to avoid this token like the plague.
