A recent rediscovery of a court document has shed new light on Ripple’s business dealings regarding XRP. The document revealed that the company had entered into over 1,700 contracts with financial institutions and companies to transact XRP. Originally filed in 2023 during the Ripple and SEC case, the document resurfaced in the XRP community, sparking discussions and analysis around Ripple’s XRP sale contracts.
Expert analysis of the 1,700 XRP sale contracts revealed interesting insights into Ripple’s business practices. Yale Law University professor Alan Schwartz provided his opinion on the contracts, categorizing them into four main groups. These categories included contracts in which Ripple directly transferred XRP, contracts where counterparties sold XRP on behalf of Ripple, contracts where Ripple paid for services with XRP, and a miscellaneous category. Professor Schwartz concluded that these contracts differed significantly from those described in the Howey test, emphasizing that they did not impact the value of XRP or distribute profits to investors.
Despite Professor Schwartz’s analysis, the SEC attempted to exclude his testimony, arguing that it contained impermissible legal conclusions. However, the court rejected the SEC’s motion, allowing Schwartz’s testimony to stand. This raised questions about the legality and implications of Ripple’s XRP sale contracts, leading to discussions within the cryptocurrency community regarding their significance.
The XRP community reacted to the news of the 1,700 contracts with mixed opinions. Some members saw it as a bullish sign for XRP, indicating widespread adoption by notable institutions. However, critics pointed out that despite this adoption, XRP’s price has remained unimpressive for years, suggesting that the large contracts may not be having the desired impact. This divergence in opinions highlighted the complexity of evaluating the true impact of Ripple’s XRP sale contracts on the cryptocurrency market.
Overall, the rediscovery of the court document shed new light on Ripple’s business practices surrounding XRP and sparked discussions and analysis within the XRP community. The expert analysis of the 1,700 contracts provided insights into the nature of Ripple’s XRP transactions, with Professor Schwartz concluding that they differed significantly from traditional investment contracts. The community’s reaction to the significance of these contracts revealed diverging opinions on the impact of Ripple’s business dealings on the price and adoption of XRP, emphasizing the need for further scrutiny and analysis in the cryptocurrency market.
