U.K-based GateHub comes out in support of ‘utility token’ XRP

GateHub, a U.K-based hot wallet company that allows users to store and trade cryptocurrencies on its platform, has come out in support of Ripple and XRP amidst the latter’s legal troubles with the United States’ SEC.

According to a statement released by the platform, GateHub will continue to list XRP until the SEC’s complaint against Ripple is adjudicated on and a final decision that classifies XRP as a “security” is made, or until it receives a cease-and-desist notice from the SEC. In a blog post titled “Announcement to XRP holders,” the company added

“We have never believed that XRP is a security under the prevailing “Howey” test in the US, and regard XRP primarily as a utility token whose value is based on its use in payments and foreign exchange. Nor have we personally witnessed any improper market conduct by Ripple Labs or its senior officers.”

GateHub’s decision is in stark contrast to the one taken by several wallet companies and exchanges that chose to delist or suspend XRP from their platforms entirely.

It is worth noting that GateHub has been an advocate for XRP since the very beginning since it was built specifically for the XRP cryptocurrency back in 2014. It later added support for several other coins, including BTC, ETH, and USD.

In fact, a similar sentiment was shared by Japan-based SBI Holdings, a long-term partner of Ripple, after it issued a statement to come to XRP’s defense.

All things considered, geography may play an important part in these decisions at this point in time since SBI and GateHub have operations based outside the jurisdiction of the United States.

The largest U.S-based crypto-exchange, Coinbase was one of the first exchanges to announce the suspension of trading XRP, moving it into ‘limit only’ last month with the full suspension to take effect from 19 January. Binance U.S was quick to follow suit, with the suspension of XRP trading expected to take effect from the 13th.

Despite being delisted from several exchanges, however, XRP’s price has recovered slightly since its crash following the news of the SEC’s lawsuit against Ripple. However, with the cryptocurrency trading with considerably lower liquidity, many investors have been cautioned about the risks associated with trading it.