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Does The Future Of Digital Assets Hinge On The Ripple Lawsuit’s Outcome? Experts Weigh In.

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Does The Future Of Digital Assets Hinge On The Ripple Lawsuit’s Outcome? Experts Weigh In.

Cryptocurrencies have spent the majority of 2022 in a slump caused by scandal, financial losses, and a public perception issue after reaching a high market value of $3 trillion in 2021. 

The FTX collapse shook the cryptocurrency sector. Millions of dollars were invested in the company by renowned investors. Huge losses were also suffered by countless individual dealers. With concerns growing regarding the health of other industry titans like Binance and Crypto.com, it represents one of the biggest issues for cryptocurrency to date.

The Ripple vs SEC case is very crucial for the entire crypto industry. Let’s see why and how? 

Ripple’s General Counsel Speaks Out 

Ripple’s General Counsel, Stuart Alderoty, expressed his opinion on how significant the XRP case verdict is for the crypto sector. He continued by saying that the decision of the Ripple case will probably have a significant impact on the future of digital assets in the US.

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If the SEC prevails in the legal dispute, XRP will no longer be regarded as a currency in the US but rather as a security in 2022. In turn, this might create a legal standard that leads to the classification of related cryptos as securities. 

According to Ripple’s general counsel, selling an asset on the secondary market is analogous to selling a commodity and therefore these assets ought to be governed similarly. 

Has the FTX debacle weakened the Ripple case? 

The recent failure of Sam Bankman-FTX Fried’s cryptocurrency exchange has caused a sharp decrease in the market for digital assets, highlighting the urgent need for legal restrictions. 

Former SEC executive Joseph Hall stated that the latest crypto market debacle could affect the court’s decision. He added that the US watchdog will work hard to make it obvious that if the judge finds against them, they will be unable to counter FTX-type situations in the future.

The SEC is sticking to the claim that Ripple is a common enterprise. This claim has become a big issue for the commission once again. The defendants claim that the XRP does not pass the security test because it was sold on the secondary market. It goes on to say that there was no such profit sharing.

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Everyone awaits the conclusion of the lawsuit. Ripple winning could provide a lot of clarity in the industry, with an increase in value and trading volume. On the downside, it could appear as a blow to the SEC’s efforts to regulate the cryptocurrency market and enforce investor protections.

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing – accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

Bitcoin

Crypto Market Correction In Feb, Suspects Traders – But There Is A Catch

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Crypto Market Correction In Feb, Suspects Traders – But There Is A Catch

The crypto market has been quite fluctuating lately, especially Bitcoin which is hovering around $23,000 and $22,000 area. The King currency had opened the day on a brighter note, but ended on a bearish trend as the currency has once again dropped towards $22,000 level.

At the time of writing, Bitcoin is valued at $22,826 with a fall of 0.42% over the last 24hrs.

When looking at the other side of the coin, Bitcoin has started the year on a bullish cycle as in January alone the currency had gained more than 45% after hitting a high of $24,300. This momentum pushed Ethereum and other altcoins towards their recovery cycle.

Bitcoin On A Bull Ride Soon

However, while the crypto market is moving towards its recovery phase, traders and investors are not so confident about Crypto’s future and are predicting a correction ahead in Feb. Now, what’s interesting is that the on-chain data platform Santiment claims that the market usually leans where traders least expect. 

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This suggests that when most of the traders are showing a negative stance towards the future of crypto, it creates less selling pressure and more buyers. If this happens, the crypto market will witness and increased demand which will push the cryptocurrency prices towards their next bull run.

The similar claim has been made by a technical analyst, Adrian Zdunczyk aka Crypto Birb where he believes that the crypto market is currently in a disbelief mode.

From my observations, the market is in disbelief mode, still fighting cognitive dissonance and placing too little weight on the recent reversal. Take it with a grain of salt, however. I’ve been riding $BTC from $16920 with size, so I may be biased a little 🙂 pic.twitter.com/DiayBFpwJY

— Adrian Zduńczyk, CMT (@crypto_birb) February 1, 2023

As per the data, often disbelief is the result of fear of missing out on profits and also its a fear of being caught in market correction. However, looking at the broader picture and the increasing institutional interest in Crypto, the market is expected to see continued growth.

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing – accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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MicroStrategy’s Bitcoin Maximalism Wavers, Shift To Ethereum? 

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MicroStrategy’s Bitcoin Maximalism Wavers, Shift To Ethereum? 

One of the leading Bitcoin network supporters Michael Saylor, the executive chairman and a co-founder of MicroStrategy, could be losing steam as a maxi. 

According to a recently revealed audio clip by altcoin daily, a crypto YouTube channel with over 1.29 million subscribers, Saylor said that he is waiting for the company’s Bitcoin holdings to break even and offload to Ethereum.

The revelation is questionable following Saylor’s daily Twitter updates that display his allegiance to the Bitcoin network. Nonetheless, the Ethereum network has made significant upgrades that may help the asset perhaps overtake Bitcoin’s market capitalization.

Microstrategy’s Investment In Bitcoin: A Giant Miss

MicroStrategy holds approximately 132,500 Bitcoins and reported a digital assets impairment loss of approximately $197 million during the fourth quarter earnings results. As an analytic and business intelligence publicly traded company, its investment portfolio significantly informs most individual investors’ strategies.

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The company uses its Bitcoin holding to borrow loans from Silvergate bank, according to a recent interview on Saylor.

Bitcoin and Ethereum H2H

Bitcoin has enjoyed the top position by market capitalization due to its age and ability to store value. With a market capitalization of approximately $448,493,277,660, the asset’s price has declined about 66 percent from its ATH, of $69,044.77. Ethereum (ETH) on the other hand has a market capitalization of approximately $202,124,722,417 and a daily traded volume of about $9,656,377,364.

The Ethereum market has, however, been leading the smart contract ecosystem with a total value locked (TVL) of approximately $29.44 billion, according to Defillama. With more institutional investors seeking crypto exposure through tokenization, and DeFi platforms on the Ethereum network, Bitcoin maximalists are getting diluted over time.

Notably, Saylor’s crypto bag could be way higher in value should he have invested in Ethereum instead of Bitcoin two years ago. 

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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Bankruptcy Proceedings Come At A High Cost For FTX, Law Firm To Earn Millions 

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Bankruptcy Proceedings Come At A High Cost For FTX, Law Firm To Earn Millions 

The FTX bankruptcy case has proved to be a lucrative opportunity for Sullivan & Cromwell, a well-known law firm, as it is expected to earn millions in fees for handling the fallen crypto empire’s finances. 

According to a recent court filing, Sullivan & Cromwell has already billed them $7.5 million for just 19 days of work on the case. Despite concerns raised by US lawmakers, the executive branch, and FTX founder Sam Bankman-Fried about the firm’s previous work for the company and the appointment of former partner Ryne Miller as FTX General Counsel, the new CEO of FTX, John J. Ray III, has defended the firm’s appointment, calling it a leading law firm in relevant areas.

Sullivan & Cromwell law firm set to reap millions

The filing covers fees and expenses from November 12th to November 30th and reports that over 6,500 hours were worked by 32 partners, 85 associates, and 34 non-legal staff. The hourly rates range as high as $2,165 and the company said it is seeking only 80% of the total $9.5 million. This drain on the estate of the corporate group as it seeks to reorganize and restore funds to creditors will be significant.

Bankruptcy judge John Dorsey will make a crucial decision today regarding the appointment of an independent examiner for the case, which FTX has warned could cost up to $100 million and duplicate Sullivan & Cromwell’s work. However, a spokesperson for Sullivan & Cromwell was not available for comment.

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A Bankruptcy Filing Could Be Resource-Exhaustive Too!

The FTX bankruptcy case has attracted widespread attention due to the high costs associated with the case, which are expected to climb more with over 150 people working on it. Big bankruptcy cases like this can generate a lot of work and help pad profits for law firms.

This case serves as a reminder of the high costs associated with bankruptcy proceedings, particularly for large corporations. While the legal fees can be a significant burden for the corporate group, it is important for the court to appoint a reputable and reliable law firm to ensure a fair outcome for all parties involved.

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