Around 2.6 billion XRP, worth circa one billion dollars, has moved from a Ripple OTC Distribution wallet to unknown wallets according to an account that tracks blockchain data.
Why such huge sums have moved from what looks like Ripple’s escrow is not very clear with Ripple Labs making no statement so far.Huge sums of XRP sold by what appears to be Ripple Labs, November 2018.
Ripple Labs has access to 55 billion XRP, with 1 billion xrp unlocked each month. They sold about $400 million worth this year prior to these movements earlier today, with the for profit company having about five billion of unlocked XRP.
It appears they sold about half of their unlocked xrp in Over the Count (OTC) trading, but at what price and to who has not yet been revealed.
That’s while the Securities and Exchanges Commission (SEC) is considering whether Ripple is a security.
They have stated already that bitcoin and ethereum are not a security because they are decentralized. There has been no statement on Ripple.
In an interview with Jay Clayton, SEC’s chairman, the interviewer asked how long it will take for SEC to make a decision on Ripple, with Clayton only stating that there’s a lot of information they have to consider.
The Securities Act 1933 doesn’t define a security other than as an investment contract. As with most laws, it was left to a Supreme Court case to flesh out just what is an investment contract.
A security is a fluid concept with many refinements, but at a practical level it is determined by – objectively speaking – whether a reasonable man down the street thinks it is a security.
That is, whether the reasonable man or woman thinks that buying XRP is investing in an enterprise in the expectation of profits due to the work of a management team.
A better way of putting it would be whether there is trust involved. Whether there has been a promise, implicit or explicit, that funds handed over will be tu...