Analysts React To XRP's Landmark Win Against SEC, But Is A Crypto Rally Justified?
Portfolio Pulse from Murtuza Merchant
The U.S. district court ruled that institutional sales of Ripple's (CRYPTO: XRP) token violated securities law, but it's not considered a security when sold through exchanges or programmatic sales. This ruling is seen as a major victory for the crypto industry. However, analysts caution that the rally in crypto-related stocks, including Coinbase (NASDAQ:COIN), which surged over 24% following the ruling, may not be justified.
July 14, 2023 | 2:46 pm
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NEGATIVE IMPACT
Despite Coinbase's stock surging over 24% following the Ripple ruling, analysts caution that the rally may not be justified as the court did not specifically reject the SEC's argument that many tokens on Coinbase's exchange are unregistered securities.
The court ruling does not directly address the SEC's claims against Coinbase, which could potentially lead to legal issues for the company and negatively impact its stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The court ruling that XRP is not a security when sold through exchanges is a major victory for Ripple and could boost the value of XRP in the short term.
The court ruling removes a significant legal hurdle for Ripple and could lead to increased demand for XRP, potentially driving up its price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100