Despite the overall positive reactions from the crypto community regarding Ripple’s victory against the SEC, XRP holders might need to brace themselves for a less transparent future. This milestone ruling has effectively removed Ripple’s obligation to disclose their XRP holdings, which could prove problematic for investors looking for clarity and security in their investments.
Ripple, being the largest holder of XRP, has significant sway over the market. With less transparency in Ripple’s holdings and transactions, the potential for manipulation and unexpected market volatility rises. The lack of oversight can lead to drastic market fluctuations, impacting the value of XRP investments.
Furthermore, investors may find it difficult to make informed decisions without full knowledge of Ripple’s activities. The newfound freedom for Ripple might be at the expense of the investors’ right to transparency, casting a dark cloud over what many are calling a victory for the crypto world.
In a twist from their usual updates, Ripple’s Q2 2023 XRP Market report focused on the landmark court ruling that declared XRP is not a security, while also addressing several misconceptions about the ruling.
Brad Garlinghouse, Ripple’s CEO, stated in a tweet,
“We began these reports to voluntarily provide updates given our XRP holdings. Sadly, they were used against us in the SEC lawsuit – however, we remain steadfast in our commitment to transparency but I suspect they’re going to look a bit different moving forward.”
He quoted a tweet from Ripple announcing the release of the report. Garlinghouse’s stance drew attention to Ripple’s constant dedication to being transparent about its operations, particularly its XRP holdings.
Ripple used to publish the quarterly XRP Markets Report to voluntarily provide transparency and regular updates on the company’s views on the state of crypto markets. The report included the following information:
- Quarterly XRP sales by Ripple, net of purchases
- Relevant XRP Ledger and XRP-related announcements
- Commentary on market developments over the previous quarter
- Information on Ripple’s ODL (On-Demand Liquidity) product and its adoption by new and existing customers
- Information on RippleNet’s growth and expansion into new markets
- Information on XRP Ledger (XRPL) on-chain activity, including decentralized exchange volumes
- Information on the total XRP sales by Ripple, net of purchases, as a percentage of global XRP volume
- Information on Ripple’s sourcing of XRP from the open market to ensure sufficient supply for the growing ODL business
- Information on Ripple’s commitment to being a disciplined and responsible stakeholder in the crypto industry
The new format report focused on Ripple’s victory in the SEC case, which was filed in December 2020. The court ruling on July 13, 2023, definitively stated that XRP is not a security. The ruling has set a precedent for other digital assets in the U.S.
Furthermore, the report debunked several misconceptions about the ruling, including incorrect claims that the ruling was a split decision, or that XRP is a security in some settings and not others.
The report also addressed Ripple’s XRP holdings for Q2 2023, with Ripple holding 5,551,119,094 XRP and 41,900,000,005 XRP subject to on ledger escrow as of June 30, 2023.
Moving forward, Ripple plans to continue its commitment to transparency while re-evaluating the role and contents of its quarterly reports. The exact changes will be announced in Q3 2023, maintaining Ripple’s commitment to raise the bar on transparency for the crypto industry.
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