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Lawyer Dismisses Impact Of Ripple Lawsuit & Escrow Burn On XRP Price – Crypto News

Published

10 months ago

May 27, 2024

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A recent remark from the pro-XRP lawyer regarding the ongoing Ripple lawsuit with the U.S. SEC and Ripple burning escrow has gained attention from the investors. In a recent X post, lawyer Bill Morgan downplayed the impact of Ripple’s ongoing lawsuit with the U.S. SEC and the burning of Ripple’s escrow on XRP price. So, let’s take a look at the discussions and see how the XRP lawyer sees these events’ impact on the XRP’s performance.

Bill Morgan’s Analysis of Ripple’s Escrow Burn and Lawsuit

Pro-XRP lawyer Bill Morgan recently addressed the perceived influence of Ripple’s actions on XRP’s market performance. Morgan noted that Ripple’s decision not to burn XRP escrow has shown no significant impact on the cryptocurrency’s price symmetry compared to Stellar, which burned its XLM tokens.

In addition, he emphasized that despite Stellar not facing a lawsuit like Ripple, the price patterns of XRP and XLM have remained similar. Morgan suggested that external factors, unrelated to either blockchain’s internal actions, are likely responsible for these market behaviors. Notably, his comment indicates that Ripple’s escrow decisions and legal issues have not markedly influenced XRP’s market dynamics.

For context, Morgan’s remarks were a response to a user’s observation about the price symmetry between XRP and Stellar (XLM) since 2014. The user questioned what might be causing this pattern and whether the two cryptocurrencies would break out together during the next bull run.

XRP Vs XLM Price Chart — Source: Good Morning Crypto (@AbsGMCrypto), X

Meanwhile, commenting on Bill Morgan’s post, another user suggested that investor psychology, rather than logic, drives these market behaviors. However, Morgan disagreed, emphasizing that the lawsuit’s psychological impact on the XRP community was profound but short-lived.

In this regard, he stated:

Impacts of the lawsuit itself and good or bad lawsuit news has usually been short-term for days or weeks and did not substantially change the symmetry shown in that chart over longer time frames.

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XRP Price & Broader Market Dynamics

Morgan’s analysis suggests that the price movements of XRP and XLM are influenced by broader market factors rather than specific actions by Ripple or Stellar. This perspective challenges the notion that significant events like the Ripple lawsuit or escrow burns have long-term impacts on the price symmetry between these two digital assets.

Notably, the lawsuit in question, initiated by the SEC, alleges that Ripple conducted unregistered securities offerings through XRP. Despite the legal battle, Ripple has continued its operations, and the market’s reaction to the lawsuit has been relatively muted in the long term. Similarly, Ripple’s decision not to burn its XRP escrow has not led to significant price deviations compared to Stellar’s XLM, which did undergo a burn.

Meanwhile, XRP price was down about 2% and exchanged hands at $0.5306 during writing, while recovering some of its losses in the last hour. Over the last 24 hours, the crypto has touched a high of $0.5397 and a low of $0.5238.

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