Ripple CTO Issues Warning against Potential XRP Scams
Schwartz’s caution comes amid a surge in XRP price and market capitalization.
Ripple‘s CTO David Schwartz has warned its community members about the rising number of potential XRP scams.
With scammers and fraudsters looking to exploit the current market hype, several airdrops targeting inexperienced users have popped up. Schwartz said, “A lot of scammers are taking advantage of the recent good news to try to cheat and steal. There are no airdrops, giveaways, or special offers associated with this ruling.”
Court Ruling Favours Ripple
In a stunning turn of events, US District Judge Analisa Torres ruled on July 13 that XRP is not a security. It also stated that Ripple did not violate securities laws by selling the digital asset.
The SEC’s lawsuit, which was filed in December 2020, caused significant damage to XRP’s reputation and value. Since then, several exchanges have either delisted or suspended trading the token. However, on Thursday, Judge Torres dismissed the case, marking a major win for Ripple and the XRP community.
XRP Price and Market Cap Jumps after Court Ruling
Ripple CTO’s caution comes amid a surge in XRP price and market capitalization. XRP price soared by over 70% after the ruling, reaching a peak of $0.93, according to TradingView.
The cryptocurrency also became the fourth largest cryptocurrency by market capitalization, displacing Binance Coin (BNB) and USD Coin. According to CoinMarketCap, XRP’s market cap jumped from $24.9 billion to $46.1 billion in one day. Again, the token’s trading volume spiked as investors rushed to buy the token amid the bullish news.
Meanwhile, US exchanges like Coinbase, Kraken and iTrustCapital also moved to relist the token on their respective platforms.
Implications of the XRP Win for the Crypto Community
Ripple’s victory over the SEC is not just a win for its community but for the larger industry. The case will now serve as a precedent for how regulators view and treat digital assets. Regarding this, the CEO of Ripple, Brad Garlinghouse said, “This is now a matter of law (not up for trial),” he wrote.
Many believe that the judge’s ruling could pave the way for more clarity and certainty for crypto projects and investors. Republican majority whip, Tom Emmer, agrees and has urged that the next step is to make it into law. He said that “the Ripple case is a monumental development in establishing that a token is separate and distinct from an investment contract it may or may not be part of. Now, let’s make it law.”
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An experienced writer with practical experience in the fintech industry. When not writing, he spends his time reading, researching or teaching.
