XRP has been one of the coins to benefit from the current crypto market rally. However, the growth pace is relatively slow compared to other top cryptocurrencies like Bitcoin, which has surged to a new all-time high of $89k, Ethereum (ETH), Dogecoin (DOGE), and Cardano (ADA). The XRP community has expressed its concern about the snail-like movement of the coin and has wondered why Ripple is not engaging in heavy promotions like Bitcoin.
Over the last 24 hours, XRP has added 9.81% to its value, trading at $0.6444 according to on-chain data. Moreover, its technical pattern shows that XRP might be on its way to a yearly high of $0.75. A good promotion from Ripple could help to catalyze this movement, but here is why Ripple will not promote the coin as much.
Ripple Unlikely to Promote XRP
In a recent post on X (formerly Twitter), pro-XRP lawyer, Bill Morgan shed some light on the lack of promotional activities by Ripple for XRP. In his post, he noted that the main reason behind this is the elongated court battle between Ripple vs SEC.
Read Also: Ripple CEO Foresees Brighter Days for XRP Amid Potential SEC Revamp
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According to him, the court declared XRP as non-security because there was a lack of evidence from the SEC that Ripple promoted XRP to retail holders. Consequently, the court declared that the programmatic sales of XRP to this category of investors do not fulfill the third requirement of the Howey Test, and therefore are not investment contracts.
Despite the ruling by the court, the SEC moved on to file an appeal expressing its dissatisfaction with the decision. Because of this, Ripple has remained careful with any promotional activity for XRP that could attract further litigation. Recall that the court also imposed an injunction on Ripple to prevent it from further breaking federal security laws.
Bitcoin vs. XRP Promotional Differences
The whole conversation stemmed from a question asked by an XRP community member, Nadir Ahmed. Nadir referenced the promotional activities carried out for Cardano (ADA) by Charles Hoskinson, its founder, and wondered why Ripple cannot do the same for the XRP community.
“Do something about $XRP LOL Look at how Charles pumps cardano, why can’t you guys do the same for the XRP community,” he said.
In response, Bill Morgan emphasized the difference between Bitcoin’s promotional freedom and XRP’s restrictions. According to him, Bitcoin does not face any restrictions unlike XRP, and BTC holders can promote Bitcoin without worrying about any repercussions from the SEC. He added that Ripple is unlikely to promote XRP amid the regulatory battle.
“I doubt Ripple ever will and certainly not before legal proceedings are long in the rearview mirror,” he said.
Meanwhile, as the court proceedings continue, the SEC has been given a deadline for its opening brief for January 15, 2025. Failure to meet this date could result in a dismissal of the case, translating to an ultimate victory for Ripple.
Read Also: XRP Faces Crucial Period Amid Ripple’s SEC Litigation and Political Changes
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications such as Coinfomania and Crypto News Guru, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.