Ripple (XRP) First Trial Begins On February 22

The Southern District Court of New York has scheduled Ripple’s first pretrial conference for 10 a.m. on February 22. A pretrial conference is when both parties involved in a case present and review evidence and clarify the issue in dispute.

The submission from Judge Torres Analyzes reveals that the conference will take place via video call and that both parties must submit a joint letter containing:

(1) a brief description of the case, including the factual and legal basis for the claim and defence,

(2) motion contemplated

(3) prospect of completion,

Ripple vs SEC

On December 22, the SEC announced that it had sued Ripple Labs Inc, the company that makes XRP, as well as Ripple Labs CEO Brad Garlinghouse and co-founder Chris Larsen, for conducting a $1.3 billion unlisted securities offering.

Ripple actually tried to run this news and made the announcement itself via an article in Fortune; However, their efforts don’t help much in terms of preventing attacks on XRP.

Since December 22, several digital currency exchanges and OTC desks – including Coinbase, Bittrex, and Genesis – have announced that they will be suspending and discontinuing support for the XRP trading pair.

All the negative news surrounding Ripple has created a snowball effect, or rather, triggered an avalanche in the XRP market. Since December 21 – when Fortune’s article mentioning that Ripple would be sued by the SEC was published – Ripple’s market cap has fallen by about 52%. Ripple’s price fell from $0.49 to $0.22. And Ripple has lost its third position in the top 10 digital currencies by market cap.

What’s next for Ripple?

You can expect to see more cryptocurrency exchanges and OTC desks discontinue offering their XRP-related services until there is more clarity around Ripple’s court battle.

Unless Ripple settles with the SEC, the outcome of the case will most likely not be in Ripple’s favor. The SEC has almost 8 years to investigate the case against Ripple and all the evidence is there; unless both parties agree, Ripple has been caught off guard.

Leave a Comment