Crypto lawyer Bill Morgan countered a claim by XPUNKNFTs’ founder, @BradPunkhouse on X, that an ecosystem relying solely on a particular token automatically makes that token a security.
If you think an ecosystem relying solely on a token makes the token a security that is incorrect. https://t.co/CCpY3XeCFM
— bill morgan (@Belisarius2020) July 6, 2024
In his post, the user had criticized XRP, saying that Ripple relies solely on the crypto token. He compared Ripple’s activities with Solana’s, claiming that Solana’s case differs due to how the project utilizes its native crypto, SOL.
Kaj (@BradPunkhouse) clarified that he had no issues with Ripple selling XRP. However, he criticized the fintech firm for not working with the XRP community to make the ecosystem thrive. He said Ripple developers should have been actively involved with the XRP community, claiming available data shows developers are critical.
XRP has been at the center of a well-publicized legal battle with the U.S. Securities and Exchange Commission over its classification. The SEC classified the cryptocurrency as a security following Ripple’s initial coin offering (ICO). The case between both parties has lingered for a couple of years with several twists and turns.
Last year, a U.S. judge ruled that XRP is not a security in itself, a ruling that the crypto community celebrated as a partial victory for Ripple and a potential indicator for the overall classification of cryptocurrencies.
Other aspects of the case between Ripple and the SEC have continued, with both parties making a series of filings to pursue their cases. With the final judgment anticipated, crypto community members are eager to see the impact the ruling would have on XRP and the broader consequences on the crypto industry.
The lingering case has hampered XRP’s price development, with the altcoin trading for $0.43194 at the time of writing, according to data from TradingView.
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