Ripple Labs, the parent company of the third largest cryptocurrency in the world, XRP has removed a lawsuit alleging XRP to be a security to the federal district court. Here, the attorney supporting the blockchain firm has retaliated over the allegation that Ripple did not register XRP as a security.
In addition, it was reported that Peter Morrison – the attorney – stated that the lawsuit comes under the periphery of the international cases as it is a consolidated class action, wherein an Israeli resident is also involved in the legal picture.
Utilizing the Class Action Fairness Act, Morrison pushed three points to back the removal of lawsuit. He mentioned that the lawsuit meets all the below requirements and stated:
“A putative class action may be removed to the appropriate federal district court if (1) the action purports to be a ‘class’ action brought on behalf of 100 or more members; (2) any member of a class of plaintiffs is a citizen of a state different from any defendant; and (3) the amount in controversy exceeds $5 million.”
Ripple is the parent company of XRP that reserves the rights to issue and distribute the tokens. Regarding this, the plaintiffs alleged that the firm is involving itself in the mentioned activities to manipulate the market price of the digital asset in the cryptocurrency market.
XRP has been a controversial cryptocurrency under the sight of those who have been caught in the dilemma of whether it is a security or not. This is majorly due to the fact that Ripple holds a large portion of XRP. However, the company has also claimed that the currency is locked up in escrow accounts via smart contracts that only allows 1 billion XRP to be freed every month for purposes related to the development of the ecosystem.
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XRP interest on the rise as analysis shows formation of a ‘quadruple bottom’
The cryptocurrency market has been subject to a significant bull run that has not only catapulted the prices of digital assets, but also their corresponding market caps. XRP, the third largest cryptocurrency, had more of a rollercoaster ride rather than the sudden surge enjoyed by Bitcoin, with the coin trading at a 6-month high, at press time.
A recent analysis conducted by DonAlt, the popular cryptocurrency enthusiast, pointed out the dips in the one-day chart of XRP. His tweet read,
A lot of interest in XRP. Kind of looks like a quadruple bottom / head and shoulders.
Not the biggest fan of longing those. If there is one lesson 2018 taught everyone is support is only support for so long.
I’ll be watching this one from the sidelines.”
There was also speculation that it was a good time to buy into XRP when there is a violent reaction at the lows, while going long previously was a risky decision. Previous readings of the XRP graph have shown that any squeeze in the XRP graph will result in a full retracement. Since May 2019, the cryptocurrency grew from $0.28 to the current trading price, which was more than a 100 percent increase.
At the time of writing, XRP was trading at $0.467, with a total market cap of $19.89 billion. The cryptocurrency was growing at a rate of 1.13 percent, with a 24-hour market volume of $42.57 billion.
XRP was in the news recently after its related application, XRP TipBot, came back online after a small downtime. Wietse Wind, creator of XRP TipBot, had tweeted,
“Oops! Sorry! Infrastructure blip. Really easy fix but I enjoyed an offline afternoon with my girls 😇 So I only found out after some time, when I checked my phone. Monitoring, messages, calls 😇 Social media tips went through during the downtime. Sorry!”
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