The news that the US Securities and Exchange Commission had filed a lawsuit against XRP token parent company Ripple and its two top executives, sent shockwaves through the crypto industry.
But the domino effect is only just beginning, according to the analyst who ahead of time called the recent Coinbase “delisting,” causing XRP to falter, possibly past the point of no return. The analyst warns that the SEC is “prowling a number of projects and companies” across the crypto industry. What could come of the emerging asset class suddenly facing its strictest regulatory scrutiny yet?
The regulatory ripple effect has just begun for crypto companies and Altcoin Projects
The SEC hit Ripple with a lawsuit claim that the XRP token it sold to investors is actually an unregistered security. The fallout from the fact that XRP is considered an unregistered security forced the hands of popular crypto exchanges that had to dispose of the assets in a hurry.
Just as quickly as the ripple effect spread across exchanges announcing the impending deletion, investors rushed to cash out their XRP coins en masse driving the price to the lows of the bear market.
Related reading | This is why the XRP securities suit is worse than previous SEC charges
It took just days to hit a low, previously requiring more than a full year of downward price action. The powerful negative momentum is almost pushing XRP out of one pitchfork channel that it has acted within its entire existence. A narrow exterior would reduce the token to just pennies per mint.
At this point, the lasting negative impact on XRP could make it a lost cause, but what’s even more terrifying is what the SEC has planned for the rest of the market.
The altcoin is facing a dangerous fall out of its long-term pitchfork channel | Source: XRPUSD on TradingView.com
Analyst who predicted Coinbase XRP deletion expects more from SEC against crypto companies
While the rest of the cryptocurrency industry mainly sat, watched, ate popcorn and pointed a finger to laugh at the Ripple situation, with a ‘told you’ mentality, the participants fail realize the potential domino effect could have this.
It took the SEC more than 6 years to make such a judgment on XRP at a time when Bitcoin and crypto are more optimistic than ever. Coincidence? Conspiracy theory? Who knows, but the timing is suspicious.
With crypto back in the spotlight, the dollar dying and Bitcoin emerging as a most pandemic resilient asset in the financial industry, the SEC could try to take the momentum under Bitcoin by targeting businesses and projects it has a chance to master?
Related reading | Ripple Lawsuit Triggers XRP Led Altcoin Apocalypse
Protecting private investors was not the motivation here as those who bought ‘Ripple’ when instructed by CNBC in 2018 were the ones most affected by this sudden SEC regulation violation – so what exactly was the motivation?
Analyst Adam Cochran also claims that the SEC is not ready yet, and “is much more active than we thought and rummages in a number of projects and companies.”
Cochran ceases to reveal further details, claiming to confirm facts and sources before breaking the “scoop” for the masses. Speculation immediately looked to the titans of the industry, like Tether.
And while that’s another demonized sign, the crypto market is probably better off without it, its sudden destruction would no doubt be catastrophic for Bitcoin and the entire industry. Let’s hope that is not true the SEC then changes their snoop.
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