One of the coins that has profited from the recent surge in the cryptocurrency market is XRP. In contrast to other popular cryptocurrencies like Bitcoin, which has risen to a new all-time high of $89k, Ethereum (ETH), Dogecoin (DOGE), and Cardano (ADA), the growth rate is very moderate. The XRP community has voiced its displeasure with the coin’s sluggish progress and questioned why Ripple isn’t promoting it as heavily as Bitcoin.
According to on-chain data, XRP has increased in value by 9.81% in the past day, and it is currently trading at $0.6444. Additionally, XRP’s technical pattern suggests that it may be headed for an annual high of $0.75. Here’s why Ripple won’t be promoting the coin as much, even if strong marketing from them may assist spark this movement.
Why Ripple Will Not Promote XRP
The lack of XRP advertising by Ripple was clarified by pro-XRP lawyer Bill Morgan in a recent post on X (previously Twitter). He stated in his piece that the lengthy legal dispute between Ripple and the SEC is the primary cause of this.
He claims that because the SEC could not provide any proof that Ripple had marketed XRP to retail holders, the court concluded that XRP was not a security. As a result, the court ruled that programmatic sales of XRP to this group of investors are not investment contracts since they do not satisfy the third Howey Test criteria.
Notwithstanding the court’s verdict, the SEC proceeded to appeal the decision, voicing its disapproval. As a result, Ripple has been cautious about any marketing initiatives that might lead to additional legal action. Remember that the judge also barred Ripple from violating federal security laws going forward.
XRP is Not Like Bitcoin
The entire discussion started with a query posed by Nadir Ahmed, a member of the XRP community. Nadir cited the marketing efforts made for Cardano (ADA) by its creator, Charles Hoskinson, and questioned why Ripple is unable to do the same for the XRP community.
Bill Morgan responded by highlighting the distinction between XRP’s limitations and Bitcoin’s promotional freedom. He claims that, in contrast to XRP, Bitcoin is unrestricted and that its owners can advertise it without fear of SEC-related action. In light of the regulatory dispute, he continued, Ripple is unlikely to support XRP.
The SEC has been allowed until January 15, 2025, to submit its opening brief as the court proceedings proceed. If this deadline is missed, the case may be dismissed, which would mean Ripple wins out in the end.
Conclusion
The cautious approach Ripple is taking with XRP promotion reflects the ongoing regulatory tensions and legal considerations surrounding the asset. Unlike Bitcoin, which remains largely free from SEC oversight, XRP continues to be entangled in a complex legal battle with the SEC, making aggressive marketing a risky move for Ripple.
Attorney Bill Morgan’s insight underlines that Ripple’s restraint stems from the court’s interpretation of XRP not being a security based on specific sales criteria. Despite XRP’s potential for growth amid market surges, Ripple’s priority appears to be avoiding further regulatory scrutiny until greater legal clarity is reached, which could be by early 2025 if the case progresses smoothly.
This conservative strategy, while frustrating for the XRP community, reflects Ripple’s need to secure a sustainable regulatory future.
Reece Conner
Reece Conner is a leading expert in the cryptocurrency industry, known for delivering cutting-edge insights and practical guidance to both newcomers and seasoned investors. With a background in finance and technology, Conner bridges the gap between complex blockchain concepts and real-world applications.