Ripple has bought shares of Bitstamp, the oldest European crypto exchange in the market, held by Pantera Capital.
The company behind XRP, Ripple, buys Bitstamp Shares. Ripple is still working pending a decision in the XRP case against the SEC, expected in early June. The firm has bought Bitstamp shares, the oldest European crypto exchange in the market, from Pantera Capital. The deal’s value has yet to be disclosed, according to Brenda Ngari at ZyCrypto. The data comes from Galaxy Digital’s Q1 2023 report [PDF].
Galaxy says it advised Pantera to sell its stake in Bistamp to Ripple in the first quarter. Bitstamp is currently the fifth-largest cryptocurrency in terms of trading volume, with about $165 million worth of cryptocurrencies traded in the last 24 hours, according to CoinMarketCap. This Ripple buyout deal comes as Galaxy Digital’s investment banking team posted stellar growth over the past year, strengthening its position as the leading investment bank for digital assets after FTX.
What does the acquisition mean for XRP?
The purchase caught the attention of XRPArmy, who discovered that Pantera had previously invested in both Ripple Labs and Bistamp. Notably, Bitstamp is currently the second-largest marketplace for XRP after Binance. In addition, the crypto exchange previously served as a gateway for Ripple, which enabled entry to RippleNet. XRP now accounts for 30% of the trading volume on Bitstamp. The most popular trading pair is the XRP/Euro.
People are trying to understand why Ripple proceeded with the deal, as neither the payments company nor Bitstamp has made an official statement. The acquisition may relate to Ripple’s goals for Liquidity Hub (LH) or On-Demand Liquidity (ODL) services. It is worth noting that Ripple’s popular ODL solution uses XRP to settle transactions, while LH does not include the token.
Ripple has agreed to improve its services after acquiring a Swiss crypto firm, Metaco, for $250 million. While the details and significance of the agreement are not yet known, it shows Ripple’s commitment to increasing tokenization momentum. It is uncertain at this time whether Bitstamp’s recent deal will positively impact the liquidity of XRP. Ripple is trading at $0.45 at Thursday’s open higher, and the 70-period and 200-period moving averages are below the last five candlesticks.
What is Ripple?
Ripple is a digital currency and payment protocol that enables fast, secure, low-cost cross-border transactions. The purpose of its creation was to eliminate the shortcomings of the traditional banking system, such as excessive fees and long processing times. Ripple excels at verifying transactions using consensus algorithms, eliminating the need for a central authority. This approach makes it more decentralized and less susceptible to censorship than other cryptocurrencies such as Bitcoin.
Additionally, Ripple is becoming more popular among financial institutions due to its potential to enhance cross-border payments. This will allow financial institutions such as banks to settle transactions in real-time using a common currency called XRP. Ripple helps reduce costs and improve efficiency in the global financial system. Overall, Ripple is a revolutionary technology that has the potential to change the way we handle money and payments. Its unique approach to blockchain and digital currency makes it an exciting development for years.
Ripple and the SEC
Ripple is the cryptocurrency company that created the XRP digital currency. The SEC (Securities and Exchange Commission) is the government agency that regulates the US securities and financial markets. The question is whether XRP is considered a security; in that case, Ripple must comply with certain regulations. The SEC claims that XRP is a security, which Ripple disagrees with.
The SEC filed a lawsuit against Ripple in December 2020, alleging that Ripple raised $1.3 billion from the sale of XRP without properly registering it as a security. Ripple CEO Brad Garlinghouse has denied these allegations, saying XRP is not a security. The cryptocurrency community is embroiled in a heated debate over a lawsuit that could have far-reaching implications for regulating other cryptocurrencies. Declaring XRP as a security would have a huge impact on Ripple and the crypto industry as a whole.
Ripple is fighting the SEC allegations, claiming that XRP is a currency, not a security. The firm also criticized the SEC for what it sees as an inconsistent approach to cryptocurrency regulation. A legal dispute between Ripple and the SEC will have a major impact on the future of the cryptocurrency industry. The final solution to this problem is still uncertain.
The SEC and Cypto
The Securities and Exchange Commission (SEC) regulates and oversees the US securities industry. The SEC has recently put more attention on the growth of the cryptocurrency space. This area presents unique risks and challenges for both investors and regulators. According to the SEC, cryptocurrencies are classified as securities only if they meet certain requirements. Specifically, the SEC defines security as an investment agreement whereby one person invests money in a common endeavor while simultaneously expecting a profit from the efforts of others.
If a cryptocurrency meets this definition, it is considered a security and subject to the same laws and regulations that apply to other securities. Any company or individual that issues or sells cryptocurrencies must comply with SEC regulations, including registering with the SEC and providing information necessary for investors to make informed decisions. The SEC has also issued guidance on initial coin offerings (ICOs), a common way companies can raise funds through cryptocurrencies. The SEC says most ICOs are securities offerings and must be registered with the SEC or qualify for an exemption from registration.
In addition to overseeing the circulation and trading of digital currencies, the SEC also seeks to protect investors from cryptocurrency-related fraud and deception. The SEC warns of potential risks associated with cryptocurrencies, including lack of transparency, volatility, and potential for fraud. The SEC’s primary goals regarding cryptocurrencies are to protect investors and ensure compliance with current securities laws and regulations. As the cryptocurrency industry evolves, the SEC will play a key role in regulating this burgeoning sector.