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Ripple/XRP: David Schwartz on regulatory uncertainty hanging over XRP, Ripple

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Ripple/XRP: David Schwartz clarifies the regulatory uncertainty hanging over XRP and Ripple
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There have been a lot of wars fought on Twitter on the nature of XRP and Ripple’s relationship with the cryptocurrency, with tonnes of articles speculating what XRP is. David Schwartz, the CTO of Ripple, put the speculation to rest in his recent interview at the SXSW Conference.

The CTO clarified that Jed McCaleb, Chris Larsen, and a couple of other people got together and created the XRP ledger. Subsequently, the developers gifted some of the 100 billion XRP created to themselves, and the company Ripple, which are both independent of each other.

He also added that holding XRP did not mean that the person held a stake in the company, Ripple. Schwartz continued by saying that security laws aren’t fully clear as to what rules have to be applied to the nascent technology. He also added,

“Security law has not changed with respect to blockchain technology… the SEC recently has talked about how they are going to think about how these tokens meet security laws. But they haven’t given a black and white test. They’ve given a test but it’s filled with vague terms.”

Additionally, Schwartz said that they were confident and “pretty comfortable” that XRP was not a security, and that it would ultimately be the SEC and the courts that’ll decide whether XRP was a security or not.



He further commented that the biggest hindrance to development in the crypto ecosystem were regulation/laws. Schwartz explained that Ripple and other companies in the space were lobbying regulators about the same.

John Bev, a YouTube user, commented,

“XRP should be used by Men/Women in the Military, who are stationed overseas, to send money back quickly to support their loved ones. We should pay homage for creating ARAPNET, now INTERNET, and allow them to use XRP!”





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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.

XRP

Has XRP decoupled from Bitcoin? Is it due to immense pressure from manipulators?

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Hash XRP decoupled from Bitcoin? Is it due to immense pressure from manipulators?
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Opinion: Bitcoin, the first cryptocurrency, has had over ten years to grow. However, other altcoins did not have the liberty, due to which Bitcoin exerts its dominance over almost all altcoins in the ecosystem, be it Ethereum, XRP, or Cardano. The price of altcoins generally tends to rise if Bitcoin’s price surges rapidly. The same can be said about the downtrend as well, which is why altcoins are said to be coupled with Bitcoin.

However, the recent buzz on crypto-twitter is that XRP is on the verge of decoupling from Bitcoin. A Twitter user @XRPMOONSHINE tweeted:

“DO ME A FAVOR OPEN UP A BTC/USD CHART AND AN XRP/USD CHART. THEY HAVE DECOUPLED AND ARE MOVING DIFFERENTLY.”

In a very general sense, the comparison of the price change of XRP and BTC gives a crude understanding of whether the prices have actually decoupled or not. Hence, the daily chart attached below shows the price of BTC and XRP against the US Dollar and extends from August 2018 to April 2019. The price of XRP seems to be following a lag from the price of BTC and do not necessarily mean that it has decoupled.

However, there are timeframes where the price of XRP has moved completely unrelated to that of Bitcoin. For example, the meteoric rise of XRP from September 18 to 22 was far higher than the price pump of BTC over the similar timeframe; but the drop of XRP from November 18 to December 16 was exactly the same as that of BTC’s.

Furthermore, XRPMOONSHINE suggested that XRP price was being manipulated. He tweeted:

“It is being manipulated to keep it from rising. For example look at XRP/BTC pair. Keeping it under the down sloping resistance from .80 in September. Thats what I mean by Suppressed, Although im expecting a fairly large move to the upside before 4/24/19.”

The “idea” of the price of XRP being manipulated is not unpopular within the XRP ecosystem as Peter Brandt, a famed trader, suggested the same in one of his tweets.

Brandt tweeted:



Conclusion

XRP may have started to decouple from Bitcoin, but it surely hasn’t decoupled completely. The notion that XRP is being manipulated to keep its price below certain levels can also not be confirmed without proof.





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