Pro-XRP attorney Bill Morgan has highlighted three enduring FUD narratives within the XRP community despite numerous efforts to debunk them.
Recently, Morgan weighed in on the continuous trend of negative narratives about XRP circulating in the crypto community. Pointing out three of the top negative narratives, he noted that it appears the XRP Army cannot move on from the prevalent misconceptions.
There are three species of FUD that it seems the XRP community cannot move on from and continue to entertain no matter how many reasons are put forward to dismantle these incorrect narratives: the three incorrect narratives including no.3 (the newbie) are:
1) That XRP price has…
— bill morgan (@Belisarius2020) April 7, 2024
FUD One: Ripple Sales Suppress XRP
Morgan first addressed the widely held belief that Ripple’s continuous sale of XRP suppresses the cryptocurrency’s price. Without dwelling much on it, the legal expert dismissed this view.
Notably, proponents of this theory argue that Ripple’s sale of XRP introduces “new” tokens into circulation, consequently exerting bearish pressure on XRP’s value. They often cite this narrative to rationalize XRP’s apparent underperformance during the current bullish market.
However, recent findings by The Crypto Basic have debunked this claim. It attributes XRP’s underperformance not to Ripple’s sales but to a lack of demand. Additionally, a comparison with Solana, the best performer among the top ten cryptocurrencies, reveals that XRP faces less than half the inflationary pressure observed with Solana.
FUD Two: XRP Has No Legal Clarity
Meanwhile, Morgan highlighted that the second prevalent FUD narrative revolves around the misconception that XRP still lacks legal clarity. According to the legal expert, this narrative takes two forms.
On the one hand, some argue that despite the court’s clear determination that XRP itself is not a security, certain sales could transform the token into one. Morgan emphasized the absence of legal precedent supporting such a notion.
On the other hand, proponents of this misconception even question Judge Analisa Torres’s judgment. Morgan noted that the Securities and Exchange Commission (SEC) has declared it had no intention of appealing the court’s findings on this matter. Yet, some still question the validity of Judge Torres’s decision.
Furthermore, the lawyer highlighted the reaction of market participants to Judge Katherine Failla’s recent decision in the case between the SEC and Coinbase as an illustrative example of the undue scrutiny that Judge Torres’s decision has come under.
Notably, Judge Failla sided with the SEC that tokens sold on exchanges may qualify as investment contracts. Following this ruling, pundits like Fox Business’ senior correspondent Charles Gasparino have claimed that the victory ruling delivered for XRP risks reversal by a higher court.
Meanwhile, other leading attorneys in the crypto sphere have regarded this viewpoint as unrealistic, particularly considering the context of Judge Failla’s decision. It is important to recognize that Judge Failla’s ruling pertained to a motion to dismiss the SEC’s case against Coinbase rather than a summary judgment like in the XRP case.
“Proposed XRP Stablecoin Will Kill XRP”
The last FUD narrative Morgan highlighted was the growing view that the proposed XRP stablecoin would either replace XRP, diminish its demand, or depress its price. He observed that this view primarily emanates from newcomers in the space.
While pundits have debunked this theory, Morgan observes that the erroneous perception subsists.
