Pro-XRP lawyer Bill Morgan downplayed the impact of Ripple’s SEC lawsuit and escrow burn on XRP’s price, garnering investor attention.
Investors have taken note of a recent remark made by a pro-XRP attorney concerning the ongoing Ripple lawsuit with the U.S. SEC and Ripple burning escrow.
Attorney Bill Morgan minimized the effect on the XRP price of Ripple’s ongoing litigation with the U.S. SEC and the burning of Ripple’s escrow in a recent X post. Therefore, let us examine the discussions and determine how the XRP attorney perceives the impact of these occurrences on the XRP’s performance.
Recently, pro-XRP attorney Bill Morgan commented on the prevailing perception that Ripple’s actions have affected the market performance of XRP. In contrast to Stellar, which destroyed its XLM tokens, Ripple’s decision not to burn XRP escrow has had no discernible effect on the price symmetry of the cryptocurrency, according to Morgan.
Furthermore, he underscored that while Stellar has not encountered legal action similar to Ripple, the price trends of XRP and XLM have remained comparable.
Morgan posited that these market behaviors are plausible attributable to external factors, which are not intrinsic to either blockchain’s operations. It is worth mentioning that his remark suggests that Ripple’s escrow decisions and legal matters have not had a significant impact on the market dynamics of XRP.
In providing context, Morgan’s statement was in reply to a user’s inquiry regarding the price symmetry that has existed between Stellar (XLM) and XRP since 2014. The user inquired as to the source of this pattern and whether or not the two cryptocurrencies would experience a simultaneous breakout during the subsequent bull run.
In the interim, an additional user commented on Bill Morgan’s post by proposing that investor psychology, as opposed to logic, governs these market behaviors. With this, Morgan argued, emphasizing the brief yet significant psychological repercussions that the litigation inflicted upon the XRP community.
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.
According to Morgan’s analysis, the volatility of XRP and XLM prices is more likely to be attributed to market-wide influences rather than the specific activities of Ripple or Stellar.
This viewpoint questions the prevailing belief that consequential occurrences such as the Ripple lawsuit or escrow fires exert enduring effects on the price symmetry between the aforementioned digital assets.
Significantly, the litigation under consideration, instigated by the SEC, asserts that Ripple engaged in unregistered securities offerings via XRP. Ripple has maintained operations despite the legal dispute, and the market’s long-term reaction to the lawsuit has been relatively subdued.
In a similar vein, the non-burning of Ripple’s XRP escrow has not resulted in substantial price fluctuations when compared to Stellar’s XLM, which underwent a burn.
In contrast, the price of XRP was down approximately 2% at the time of writing, trading at $0.5306, having recouped a portion of its losses from the previous hour. The cryptocurrency has fluctuated between $0.5238 and $0.5397 in the preceding twenty-four hours.
