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Prosecutor John e. deaton marked a massively significant victory for the crypto industry as a whole, the xrp community as well as the ripple yesterday. As Bitcoinist reported, Deaton appeared as an amicus in the remedies hearing in the litigation between LBRY and the U.S. Securities and Exchange Commission (SEC).
The lawyer managed to get dry, "live and on tape," which he does not consider secondary sales of the LBC token as titles. Furthermore, the judge of the New Hampshire District Court confirmed that he would specify in the final appeal that he would not pronounce himself on the secondary market.
For the LBC token, this meant massive amounts of good news, because the previous decision would have jeopardized the existence of the token, which is independent of LBRY. As a result, the LBC price reacted tremendously high yesterday. Following the publication of the news, the price increased by 155%. At the time of the press, the AML price stood at $0.024,913, always peaking at 120%.
If Ripple wins, is XPR going to double the prize?
The rise in the LBC token price following yesterday’s partial victory by LBRY against the SEC may be a foreshadowing of what will happen to the XRP price in the event of a Ripple win and regulatory clarity.
When the lawsuit against Ripple was launched by the SEC at the end of December 2020, the price of XRP fell by -72% in one week, from $0.60 to $0.17.
Since the trial, xrp has also shown a relatively significant weakness compared to other cryptocurrencies, such as btc and eth. While bitcoin is in decline -66.7% and ethereum is in decline -67.7% of its record, xrp is in decline -88.1%. This suggests that potential XRP investors have been unwilling to invest because of the high risk associated with the latter case.
A cascading win, on the other hand, could trigger an exhilaration that will attract new investors and cause existing investors to increase their XRP investments. As Bill Morgan said, the LBC rally shows what you can do if you win.
Shows what could happen to XRP if the case has a good outcome https://t.co/uA63GMgxW4
— bill morgan (@Belisarius2020) January 31, 2023
Moreover, it should be noted that the positions of Ripple and LBRY are completely different. The U.S. won the case against lbry, and the judge ruled that all lbc by lbry sales are securities.
This means that LBRY can no longer sell LBC tokens without first obtaining approval from the US Securities and Exchange Commission. Ripple, on the other hand, fights to make sure that not all XRP sales are securities at some date, or at least in the future.
So Ripple can win all the same and has much more potential. However, it is also worth noting that the XRP market is significantly more liquid than the lbc token. However, a scenario such as LBC does not appear to be improbable for XRP, given the historically reduced price of XRP.
In addition, XRP binding on US cryptocurrency exchanges could add substantial purchasing pressure, like partnerships with American corporations or banks that have been put on hold because of the SEC. Candidates for this could be Bank of America or MoneyGram.
At the time of the press, xpr was at $0.4030, pending today's decision on interest rates and the Federal Council meeting.
