Anticipation of appeals, here's what could happen next
Four days ago we reported on how Crypto turned Green as the SEC lost part of their case against Ripple Labs and just as quickly as the price went up due to market hype it has appeared to come crashing down. However, those gains all seem to be sitting with XRP as the token is still trading quite high.
No doubt the excitement is continuing on for Ripple labs as it begins being relisted on exchanges and it's market availability continues to regain lost ground since it's initial troubles with the Securities and Exchange Commission (SEC).
For it's reward XRP has knocked out Binance from 4th position and is sitting just over USD! Billion more in value in comparison to BNB which is the native currency for Binance exchange.
The increase in value for XRP has seen Bitcoin trending down edging closer to the USD30,000 price point and it appears the sector has lost it's appetite for a sustained Bull run. However, as the article we touched on yesterday explored many people are still hesitant to invest given the current clarity and SEC involvement and are likely to be holding back in fear of losing their funds. But there is also another important period fast approaching.
Anxiety Plagued XRP
As we raised in our initial article reporting on the XRP successful decision stating that the token being sold on exchanges wasn't a security but it's sale hosted in pre-sale phase was, has added additional confusion and muddied the waters.
While it has resulted in relisting the token the SEC has a limited time period to lodge an appeal which many are backing the SEC to do which could compromise the gains already made by Ripple labs.
The SEC currently has 6 days to launch an appeal on the decision and if approved it could be refought in court and overturned with many people suggesting that this might happen as the finding was too confusing. Although there is no real way of actually knowing what the finding will be or if it will actually be appealed. Many are still feeling anxiety around what might come next given the quick impact it had on the market the day the news broke.
Now someone a lot smarter than me on US Law has made a few more better clearer points in that despite this Monday being the deadline for an appeal. A few things in this case may actually see that time frame pushed back until after the case ends.
One of the points was that judge Torres did not certify the ruling for immediate review meaning that an appeal might not be granted and there is caution in this case. As an appeal could impact the case and depending on who win's and loses set a precedent that all courts have to follow.
although it hasn't detracted investors from jumping on board and buying up large amounts of XRP.
More Bank Bans
It isn't the only thing currently plaguing the Crypto Currency market as Banks in Australia continue to ban transfers to crypto exchanges however, the bank has stated it will only be banning the exchanges where scams are occurring the most. Many believe the Binance is on the banks radar and is a likely exchange to be banned by the Bank.
The Bank has developed a bank wide scam strategy where they believe Crypto is becoming a growing problem for their customers who are often reporting scams and losses of funds. No clear exchanges have been provided by the bank at this stage.
The lockout of funding coming into the sector will continue to cause it to move sideways for quite some time until the issues are all addressed and Aussie's will most likely be less appealed by the investment opportunities available in the decentralised finance world.
How long will this last?
It is anyones guess how much longer this will go on for but there appears to be a major battler between a number of players for control and dominance of the Decentralised finance world and as we know, there can only ever be one winner.
Binance has already conceded that it will be moving to a crypto trading only platform removing it's futures and many other services but the overall sector seems to be operating still.
Only time will tell what the outcome might be and all we know is that the market has retracted once again to a fear position.
image sources provided supplemented by Canva Pro subscription this is not financial advice and readers are advised to undertake their own research or seek professional financial services.