Ripple Responds to SEC Lawsuit Over XRP Sales

Ripple Responds to SEC Lawsuit Over XRP Sales

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If you’ve noticed recently, most stocks that are drawing interest and headlines also sell at three-digit or four-digit prices. That makes it tough for a small investor to get a grub stake in some of the bigger names out there. Some investors are left wondering, are there any stocks under $10 that seem like they have great potential? Now, granted, if you put $1,000 in a stock priced at $500 a share you only get two shares, but if the stock goes up 20%, you still make 20% on your money. But low-priced stocks give you the ability to control a large stake in a company that is hopefully on its way to a $500 price tag. And that’s what the companies hope, too. Usually stocks under $10 aren’t trading enough to get picked up by institutional investors and big funds. But once they gain traction, it can be off to the races, as we’ve seen many times in the past year.InvestorPlace - Stock Market News, Stock Advice & Trading Tips 7 Safe Stocks to Buy for Solid Returns in Tumultuous Times Here, I’ve picked seven stocks under $10 to buy for February. These are hot stocks with big prospects moving forward, and each and every one has an “A” rating in Portfolio Grader. Ceragon Networks (NASDAQ:CRNT) FinVolution Group (NASDAQ:FINV) Himax Technologies (NASDAQ:HIMX) iBio (NASDAQ:IBIO) Kopin Corp (NASDAQ:KOPN) Ribbon Communications (NASDAQ:RBBN) StoneMor (NASDAQ:STON) Stocks Under $10: Ceragon Networks (CRNT) Source: Shutterstock This Israel-based mobile telecom company may not be on your radar, because it doesn’t operate on the retail end of mobile. It does the heavy lifting between a carrier and its towers or tower-to-tower information that keeps the whole service up and running properly. It has been publicly listed for more than two decades and has operations around the world, especially in developing nations where mobile services leapfrogged wireline services decades ago. With 5G rolling out in developed nations now, and developing nations later, CRNT will have plenty of business on its hands for year to come. The stock is up 109% in the past year and has a market capitalization of $380 million, so it has the size to continue its growth. FinVolution Group (FINV) Source: PopTika/ShutterStock.com What’s one thing the Chinese market has that the U.S. market doesn’t? 1.5 billion people. That means there’s more rich people, more middle-class people and more working-class people. And as it builds out platforms for these demographics, there are many opportunities for growth in this young market. That’s why finding promising stocks under $10 that haven’t been bid to the moon by Western investors is always exciting. FINV is one of them. It connects underserved borrowers with banks that can lend them money. And it’s an all-digital platform. Given the recent crackdown by Chinese authorities on lenders, the fact that FINV got through unscathed shows its platform is well run. 8 Cheap Stocks to Buy With Your Next Stimulus Check The stock is up 62% in the past year, has a 3.42% dividend and has a current price-to-earnings (P/E) ratio below 5. Yowza. Himax Technologies (HIMX) Source: Shutterstock One of the big trends of the past decade or so has been the transition from chipmakers that had their own fabrication plants (they built and designed their chips themselves) to fabless chipmakers (companies that designed the chips and had someone else fabricate them). The trend is heading toward fabless chipmakers that work with a handful of specialized companies that fabricate the chips to the chipmaker’s specifications. HIMX is a fabless chipmaker headquartered in Taiwan, one of the chipmaking capitals of the world. The company is a leader in integrated circuits, which are in every consumer device you can think of. And while the big names have hit the big time, HIMX is still a stock under $10. But it has a $1.7 billion market cap. And investors are catching on. It’s up 162% in the past year, but 174% in the past three months. Don’t wait on this one. iBio (IBIO) Source: Shutterstock When creating a list of stocks under $10, it’s almost obligatory to feature a biotech or two. It’s the nature of these firms to find a unique niche with a therapy or technology and then find a solution to show proof of concept. IBIO has two different sides to its business — a CDMO and a biotech business. A CDMO is a contract development and manufacturing organization, which means other drug companies contract with it to get drugs through clinical trials and then manufacture the drug as trials ramp up. This helps drug companies stick to research and development (R&D) work rather than dealing with drug trials. It also has a unique FastPharming technology that can move a production from gene sequence to protein production in as little as three weeks. It also has a vaccine candidate that can target Covid-19, as well as one for swine flu in pigs. 9 Stocks Selling at a Discount Right Now The stock is up 470% in the past year, but there’s a lot more here than just Covid-19 hype. Kopin Corp (KOPN) Source: Gorodenkoff / Shutterstock.com One sector that most investors overlook when searching for small stocks under $10 is the defense sector. Most people know the big names and assume they or their various divisions make up a lion’s share of the business. But there are scores of subcontractors that specialize in niches that big firms don’t bother with — until they become bigger. And that’s where KOPN fits in. It’s a tech company that makes micro-displays for augmented reality (AR) and virtual reality (VR) headsets and hand controllers. And this makes it a major niche player in the armed forces for pilots’ helmets and training displays. The stock is up almost 980% in the past year, which sounds crazy, but it has yet to tap into the bigger corporate markets yet or really expand into the defense sector. Ribbon Communications (RBBN) Source: Fit Ztudio / Shutterstock.com The one thing the pandemic has done is lower the volume on a lot of other trends that are happening in the market. One of the big ones is the transformation to 5G mobile technology that is going hand-in-hand with increasing computing power, including an expanding array of smart devices. But to keep that all working, you need telecom software solution providers that operated in the wireless and wired sectors to help telecom providers maximize their systems. That’s what RBBN does. And it’s also why you likely haven’t heard of it. This is a behind-the-scenes player that rarely gets the spotlight but is doing very important work to keep the headline companies in the headlines. The 7 Best Dividend Stocks To Buy On The Market Today It has a $1 billion market cap, so it’s not a small firm. The stock is up 142% in the past year, and 100% in the past three months. It’s also a solid takeover target for a larger telecom. StoneMor (STON) Source: Shutterstock There are two things in life that are sure things: death and taxes. STON isn’t a tax company. It’s one of the leading cemetery and funeral home firms in the Mid-Atlantic, Northeast and Midwest. Currently it has 315 cemeteries and 82 funeral homes across about 26 states and Puerto Rico. It recently sold its operations in the West to better focus on the markets it already has exposure in. They weren’t a large part of the operation and likely were no longer worth the effort opening a new region. Given an aging demographic and consolidation in this industry, STON may not be a sexy stock, but it’s in a solid market. The stock is up 146% in the past year, and its recent sales out West mean more money for expansion in its core markets. On the date of publication, Louis Navellier has a position in HIMX in this article. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article. The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article. Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner It doesn’t matter if you have $500 in savings or $5 million. Do this now. The post 7 Stocks Under $10 to Buy for February appeared first on InvestorPlace.

XRP Surges 50% After Ripple Files SEC Response

The last few months have been very challenging for XRP holders. The cryptocurrency plummeted in price while the other top cryptocurrencies by market cap experienced price growth not seen in years.

XRP’s price collapse was due to charges brought against Ripple Labs and two of its executives in December. The SEC charges include the sale of over $1 billion in unlicensed security based on their sales of XRP. The SEC alleges that XRP is a security, a designation not assigned to the top two cryptocurrencies, Bitcoin and Ether.

This announcement led to an over 50 percent price decrease as many platforms that utilized RippleNet and XRP suspended operations over these allegations. These platforms are unregulated by the SEC and want to remain that way. As such, these allegations might bring them under US jurisdiction if they participate in the sale of securities to users. Even regulated firms like Grayscale, the largest digital asset manager in the cryptocurrency space, reduced XRP holdings following this announcement.

Ripple is Fighting Back

Many stakeholders in the XRP ecosystem were extremely upset with these allegations. Some filed petitions filed alongside lawsuits. Some were against the SEC for waiting seven years after the launch of XRP to take action. Others sued platforms like Coinbase for allowing the unregistered sale of securities.

Aside from all the drama surrounding these charges in late 2020, Ripple has legally responded to the accusations. In the filing, they claimed that the charges are based on ‘an unprecedented and ill-conceived legal theory – with neither statutory mandate nor congressional authorization”.

Ripple Says XRP is Not a Security

The Ripple Labs legal team states that XRP is not a security. They ground this on the fact that ‘XRP performs a number of functions that are distinct from the functions of “securities” as the law has understood that term for decades. For example, the token functions as a medium of exchange […] It is not a security and the SEC has no authority to regulate it as one”. Ripple Labs, Brad Garlinghouse and Christian Larsen claim that since the token functions as ‘currency’ providing a means to store and transfer value, the SEC does not have jurisdiction over it as a security.

However, Ripple Labs and the two other defendants allegedly sold over $1 billion of XRP to fund their operations and for personal reasons. This has never traditionally been possible from a privately issued ‘currency’. For now, XRP will remain in limbo, but it should be very interesting to see how the SEC responds.

The crypto community, however, seems glad to see Ripple responding officially, if the price is any indication.

英國財政部重申：XRP為交易代幣而非證券

英國財政部重申：XRP為交易代幣而非證券

比推Bitpush.News-Liang Che / 何渝婷

2021-01-13 09:05

英國財政部在最新發表的一份文件中，重申了XRP是一種交易代幣而非證券的立場。

在最新的文件中，英國財政部概述了英國對加密貨幣和穩定幣的監管方法。該報告將XRP、以太坊和比特幣歸類為「主要作為交易手段的代幣」，這些「交易代幣」屬於「不受監管」的範疇，這意味著它們既不是數位貨幣，也不是證券化代幣。

英國財政部的這份報告，參考了英國金融行為監管局（FCA）在2019年制定的監管框架。該部門表示，「證券化代幣具有類似於英國立法規定的特定投資特徵，如股票或債務工具。廣義上講，其很可能是傳統證券的代幣化、數位化形式。」

英國方面的這一表態，對Ripple來說非常重要，該公司作為XRP代幣背後的公司，正在面臨美國證券交易委員會（SEC）的訴訟，SEC指控XRP在推出時是一種未註冊的證券，並且目前仍是一種證券。

據《比推》此前報導，Ripple此前在呼籲美國澄清監管時也強調了英國FCA的分類。該公司表示，「率先制定這些框架的國家，將更好地吸引資本、公司和工作崗位，因為區塊鏈技術將一直存在。監管不明確的地區應該建立自己的框架以保持競爭力，避免公司流失到監管更好的市場。」

Ripple執行長Brad Garlinghouse此前表示，該公司95%的客戶在美國之外。由於監管方面的不確定性，美國的潛在客戶不願使用Ripple的XRP相關服務。

作為應對措施，Ripple有可能將總部遷至英國、日本或新加坡等監管政策明確的國家。

本文為巴比特授權刊登，原文標題為「英國財政部重申XRP是交易代幣而非證券」