Questions and answers: Kaiko Research Analyst on Rippler law problems and the rally of XRP

Questions and answers: Kaiko Research Analyst on Rippler law problems and the rally of XRP

Almost two years after the SEC had filed a lawsuit against it, Ripple Labs and two of its managers because of an alleged edition of an unregistered securities, the fight seems to be approaching its end. Last month, both the regulatory authority and the issuer of the cryptocurrency agreed to allow a judge to enact a summary judgment, by avoiding legal proceedings and hopefully setting up the matter before the end of the year.

Even in the middle of the drama, XRP, the token in question, has increased by more than 8,000 % since its edition. Its liquidity has also miraculously remained strong.

Blockworks, Riyad Carey, Research Analyst at the cryptodata company Kaiko, consisted of discussing what the case means for the future of the industry and how one should think about XRP's latest price campaign.

block works: What does the current court dispute with XRP mean for the entire industry?

Carey: XRP was one of the earliest tokens that was issued, so I think that this court process is quite significant. It speaks to a certain extent to the SEC and the attitude that she wants to take towards crypto. It took many years, so I think that the industry as a whole is probably watching it pretty closely. But due to the result of this one court procedure, I would not necessarily panic or celebrate.

block works: If XRP is considered a security, what could that mean for the rest of the industry? What should other issuers think of now?

Carey: I think XRP itself has been treated as a de facto security since the beginning of this legal procedure. It was deleted by the US exchanges, so it has already suffered the consequences.

The USD volumes have decreased, but this was supplemented by foreign volumes; Korean volumes, Mexican volumes, it has reached a different acceptance. I think token issuers would do well to observe XRP and think about what could be done differently. Are you supposed to think about what the most important points the SEC examined to target XRP compared to other issuers? The SEC only has a certain bandwidth, so why did you choose? Ripple in contrast to other issuers? I think that is important to consider.

block works: What role do stock exchanges play when deciding which tokens should be listed? How do your teams think about the token classification?

Carey: I cannot speak to the processes of the individual stock exchanges, but I would say that in general, pay more attention to what you list now.

I used to work as a political analyst, I have followed the global regulatory developments, and it seemed as if last year, every country around the world had warned of the greatest stock exchanges for about six months to offer 100 times the margin. And so the exchanges removed it, even the global stock exchanges that were not particularly bound in the past, pay attention to their listings and products they offer.

But I have seen nothing about XRP that indicates that the result of this study would change something essential at a global level.

block works: What effects does the regulation have through enforcement to the industry?

Carey: I think it logically has a deterrent effect in the USA, but since it is a global, decentralized technology, less activity does not mean that there is less activity in general, it only means that it moves somewhere else. But the thing is that people in the USA want to be innovative, that's just a fact in the world. It only brings projects into a difficult situation in which they do not know what the rules are.

block works: What did we see at XRP regarding price actions? What does that signal?

carey: in general it moved with the wider market, but the large catalysts were all connected to dishes. Days when we saw court files and lawsuits were all the most volume days of the year, so that this is a significant factor in its price campaign.

XRP has experienced a legitimate, organic growth on the Mexican market, which at one time made the majority of its volume, which is very unusual. The Mexican stock exchange is Bitso, and XRP has consistently identified most of the volume on the stock exchange since March this year. This is unusual because almost every stock exchange that we cover has BTC as the majority of its volume.

People actually use XRP for cross -border payments, transfers and these types of transactions.

I was quite surprised to see that the liquidity on the largest stock exchanges in the world is still very good. There is no significant disadvantage compared to the industrial benchmark.

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The article Q & A: Kaiko Research Analyst On Ripplelegal Troubles and XRP’s Rally first appeared on block works.