The Ripple’s XRP sales have ignited a fervent debate – Analyzing the implications for loyal XRP backers

A fiery exchange of tweets has sparked a lively discussion in the crypto community regarding Ripple’s authority to sell XRP tokens. The debate was initiated by XRP advocate Bill Morgan and crypto analyst “Darkhorse” on the X platform.

There are no legal barriers preventing Ripple from selling its XRP tokens, according to Morgan. He argues that anyone can sell an asset that they own. The real question is whether Ripple is required to register its sales and offers of XRP with the U.S. Securities and Exchange Commission (SEC). If Ripple sells XRP programmatically, as it has done in the past, it does not need to register the sales.

Morgan’s response comes after Darkhorse referenced a ruling by Judge Analisa Torres in July 2023, which suggested that Ripple was not allowed to sell XRP. Morgan questions the validity of this ruling and highlights that it pertains to institutional sales, not general sales by Ripple.

Morgan asserts that Ripple has the legal right to sell XRP and clarifies that these sales should not be considered investment contracts under U.S. Securities law. He emphasizes that nothing is stopping Ripple from selling its XRP, and the focus should instead be on whether it needs to register these sales with the SEC.

Following Judge Torres’ decision, another X platform user raises an important point about Ripple’s XRP sales. By acknowledging Ripple’s involvement with XRP, these sales may now be classified as securities transactions, suggesting an expectation of increased value due to Ripple’s activities.

Despite this potential classification, Morgan points to the performance of XRP’s price over the past five years as evidence that expecting profits from Ripple’s efforts may not be reasonable. He suggests that those who bought XRP after July 13th with such expectations may be seen as irrational.

This legal debate takes place amidst Ripple’s recent transfer of 80 million XRP tokens, valued at around $46.18 million, to an undisclosed wallet. This transaction has sparked speculation within the XRP community and has influenced XRP’s market performance. Over the past 24 hours, XRP’s price has experienced a 1.5% decline, reaching $0.566. However, it has shown resilience over the past week with a 2.6% increase.