Legal expert Jeremy Hogan recently criticized the SEC’s push for a whopping $2 billion penalty against Ripple in their ongoing legal battle. Hogan warns that if Ripple were forced to comply, it would likely have to sell a significant amount of XRP, potentially causing the coin’s value to drop even further. This, Hogan argues, would hurt retail investors, which goes against the SEC’s supposed aim of protecting investors.
Hogan Spilled Beans on SEC’s Hefty Fine Tactic
Hogan specifically lashes at the SEC’s request for final judgment, which seeks a hefty fine against Ripple for alleged violations of federal securities laws through its institutional sales. He argues that if the court grants the SEC’s plea, Ripple would be forced to sell large quantities of XRP from its holdings, leading to a substantial drop in XRP’s price and adversely affecting retail investors.
The underperformance of XRP in recent months, despite legal clarity, has raised eyebrows among investors, who attribute its lackluster performance to alleged price suppression caused by Ripple’s monthly sales of XRP. While Ripple regularly releases 1 billion XRP from its escrow accounts each month, concerns persist about the impact of these sales on XRP’s value, although concrete evidence linking them to underperformance remains elusive.
Expert’s Says No Need to Sell XRP
Amid the current storm, Vandell Aljarrah, co-founder of Black Swan Capitalist, advised XRP holders to ignore suggestions to sell their holdings despite XRP’s poor performance. He opposed Joshua Jake’s advice on the Discover Crypto channel, which urged XRP holders to sell their tokens.
Jake’s recommendation stemmed from XRP’s recent performance compared to other altcoins, suggesting that investors consider alternative assets to maximize gains in the current market cycle. However, in comparison to other altcoins, XRP has seen minimal growth, with only a 5.29% increase over the past 90 days, significantly lower than its competitors, which have experienced nearly double-digit gains during the same period.
XRP in Deep Waters
Looking ahead, if the court sides with the SEC and imposes the $2 billion fine on Ripple, the company may need to sell around 3.22 billion XRP coins at the current market price of $0.62 per coin to raise the required funds. However, Ripple could potentially tap into its reported $1 billion cash reserves to cover the penalty, as disclosed by CEO Brad Garlinghouse earlier this year, mitigating the immediate impact on XRP’s market dynamics.
