Ripple-affiliated cryptocurrency XRP has been in the spotlight lately, partly due to legal developments in the case with the United States Securities and Exchange Commission.
However, a widely followed crypto pundit is outraged by some happenings in the XRP ecosystem and vows never to touch the crypto again.
Worrying XRP Price Action Amid Regulatory Uncertainty
Elite Crypto said in a recent post on X that the price of XRP has been trading like a stablecoin due to its stagnant price action over the past two years. In an accompanying chart, the expert noted that XRP has been stuck within a particular range over this timeframe.
Launched in 2012, XRP is currently the seventh largest cryptocurrency by market capitalization — and, not too long ago, held a steady position in the top three. However, the crypto has been under bearish pressure since the SEC initiated its $1.3 billion lawsuit in 2020. The lack of legal and regulatory clarity over whether or not XRP qualifies as an unregistered security has undoubtedly weighed on its price.
But last year, Ripple scored an unequivocal victory against the SEC when a judge ruled that programmatic sales of XRP to retail investors did not constitute securities. And in August, a New York court ordered the fintech company to pay a $125 million fine over XRP transactions that violated securities laws. The SEC had sought a more substantive $2 billion judgment.
Nearly four years later, the industry-wide implications of Ripple’s legal battle have been heightened as the case moves to the Second Circuit Court of Appeals. To the dismay of XRP holders, it seems the SEC wants to keep a cloud of uncertainty hanging over the crypto with its appeal.
Ripple Executive Chairman Donates Millions In XRP To Harris
The other reason why Elite Crypto is enraged is the news of Ripple co-founder Chris Larsen’s $10 million donation in XRP to boost Kamala Harris’s United States presidential campaign.
The pundit stressed that he is bullish on Harris’ Republican rival, Donald Trump, and bearish on XRP. This implies that Elite Crypto is wary of the anti-crypto stance taken by the Biden-Harris administration and, therefore, infuriated by Larsen’s XRP donation to Harris.
Notably, Elite Crypto is not the only one who was not happy with Larsen’s mammoth contribution. Others speculated that the Democratic nominee could liquidate Larsen’s entire crypto donation, potentially affecting existing XRP investors.
Case in point, one commentator on X observed:
“The narrative “Ripple dumps XRP on holders” has now become “Kamala dumps XRP on holders”…. I absolutely respect your right to donate and vote for whomever you want — but the optics on this will not go over well with the XRP community.”
In a nutshell, XRP’s sluggish growth over the past two years and Larsen’s controversial donation are the reasons behind Elite Crypto’s decision to avoid the token like a plague.
