 in today's video we are talking ripple guys as you guys can see today there's been a huge sell-off we're down currently about 15% just on the day with the reason why ripple has been falling yesterday we received some news from ripple CEO warning that the sec may sue the company over xrp sales and then today we got the confirmation that sec is charging ripple and two executives with conducting a 1.3 billion dollar unregisters securities offering so we're going to be talking about this guys and we're going to be talking about the future of ripple on what we think might happen and where the prices can go from here guys make sure that you like and subscribe guys hit that notification bell and drop a comment let us know if you've been in this bull run and if you guys are interested in using the exchange that we use we use buy bit and in the description we have a link where you guys can sign up through that and you'll be able to get some rewards on your initial deposit up to around a hundred dollars or more so without further ado let's jump right in guys what is going on guys and welcome back to another bitcoin daily video if you need to the channel my name is jay let's jump right in guys so today you see this big red candle guys we're down about 60 almost 16 percent on on uh i was gonna say there on xrp guys uh as you can see here as far as what the patterns been doing um after we're breaking down in this uh pattern right here in this channel we broke out of it we consolidated up top for a bit before breaking down due to this news now as you can see here we did get a little a small little bounce here at the bottom of this channel as you guys can see here that it was following before and then we also have this Fibonacci retracement right there right so we're gonna be taking a look at this guys we're gonna see if there's any possible trades to be made here um but first let's jump into the news on what exactly caused this huge huge drop right so um first things first i believe it was yesterday evening maybe yesterday afternoon yesterday evening something like that ripples ceo warned that the sec may sue company over at xrp sales so he was saying that the us security and an exchange commission intends to sue ripple over the sale of xrp um he said that on monday and according to fortune the lawsuit will be filled in the near future though no specific date has been provided yet so as you guys can see here um the it's the council the council the lawyers of xrp said this complaint is wrong as a matter of law other major branches of the US government including the justice department and the treasury department's fin sen has determined that xrp is a currency transactions in xrp thus fall outside of the scope of the federal security laws this is not the first time that sec has tried to go beyond the statutory authority the courts have corrected it before and will do so again so um that's basically what the what the lawyer said if you didn't know ripple has already been sued um by investors uh in a class action suit lawsuit uh on claims that the company said xrp's price would rise so that's that suit uh began in 2018 and continues its course through the courts that is insane guys since 2018 uh xrp bag holders that bought that bought at the top i'm sure are very upset that the price dropped down so they're suing xrp guys don't be a bag holder like that you have to try to sue the company because you decided to buy at the top that's crazy uh almost start suing any company if i buy at the top and the price falls down i am suing from now on the company has previously paid $700,000 in fines and another uh 450,000 guys those are pennies to these guys so that doesn't even matter the CEO of xrp or billionaires guys so those are pennies all right so let's go to the next so so that was yesterday now today boom we have from the us securities and exchange commission themselves they themselves put out a press release um stating the sec charges ripple and two executives with conducting $1.3 billion un unregistered securities offering so it continues the securities and exchange commission announced today that it has filed an action against ripple labs ink and two of his its executives who are also significant security holders a legend that they raised over $1.3 billion through an unregistered ongoing digital asset securities offering so the complaint is against christian larson and bradley garlinghouse right um the complaint alleges that ripple raised funds beginning in 2013 through the sale of digital assets known as xrp in an unregistered securities offering to investors in the us and worldwide ripple also allegedly distributed billions of xrp in exchange for non-cash considerations such as labor and marketing market making services according to the complaint in addition to structuring and promoting the xrp sales used to finance the company's business larson and garlinghouse also affected personal unregistered sales of xrp totaling approximately $600 million the complaint alleges that the defendant failed to register their offers and sales of xrp or satisfy any exemption from registration in violation to registration provisions of the federal security laws issuers seeking the benefits of a public offering including access to retail investors broad distribution and a secondary trading market must comply with the federal security laws that require registration of offerings unless an exemption from registration applies so that's basically one of the one of the directors of the secs secs enforcement divisions stated um he also said we alleged that ripple larson and garlinghouse failed to register their ongoing offer and sell of billions of xrp to retail investors which deprived potential purchasers of adequate disclosures about xrp and ripple's business and other important longstanding protections that are fundamental to our robust public market system the registration requirements are designed to ensure that potential investors including importantly retail investors receive important information about an issuers business operations and financial conditions um here we alleged that ripple and its executives failed over a period of years to satisfy these core investor protection provisions and as a result investors lacked information to which they were entitled the secs complaint filed today in the federal district court in manhattan charges defendants with violating the registration provisions of the security act of 1933 and then they're just seeking a bunch of penalties guys this is this is pretty crazy this is pretty crazy i'm gonna gonna say it myself so now this is the issue here an sec victory and ripple case would render xrp untradable they're stating that many cryptocurrency exchanges would be forced to delist it so liquidity would dry up in the event that sec won the case exchanges that continue listing xrp run the risk of being asked to register as securities exchanges by the sec exchanges that continue listing xrp would run the risk of being asked to register as securities exchanges by the sec should the commission win its lawsuit otherwise these these exchanges might face penalties for allowing retail consumers to trade in unregistered security so basically if the sec were to win the lawsuit um any exchange that's listing xrp would be at risk right of being sued or being pursued by the sec as well so they would be forced to delist xrp which would of course crash xrp you could already see in this report there's already one small exchange that nobody has ever heard of that delisted it i mean nobody really cares about them um so you can see here that odds that xrp gets delisted on the sec developments are low so although the short term is a little scary since there's a lot of uncertainty there's a lot of fear people don't know what exactly is going on there are definitely scenarios where this works out in favor of xrp as well there are various ways the sec could grant special operating conditions or accept a payment of a settlement from ripple that could dampen the blow another idea is that this call could eventually allow ripple to list on traditional stock exchanges and potentially open it up to a far wider market which in turn would mean that there could be extremely positive price action in the long term so the former commodity futures trading commission chairman christopher john carlos he had said that his view on xrp should that it should be considered a currency or medium of exchange not a security he cited the howie test a supreme court case that had been used as a chief standard for assessing whether or not something is a security um in short the howie states that something is a security if one if it one is an investment of money in a common enterprise with a reasonable expectation of profits derived from the effort of others according to john carlos um xrp investors were not promised returns or a share of ripple's profits but the sec sees it differently so there's a lot of information here guys basically the sec is complaining that um that xrp has created an an information vacuum is what they're calling it where basically they're they're not you know um giving the public everything that's going on then they also mentioned here moneygram and that they were compensating uh moneygram to use xrp in its business to uh increase the volume so you guys could actually go here and see the full document here the full complaint all the information here i'm not gonna go through all of this on this video because in this video is gonna be super long um but it's definitely here for anyone who is interested in actually reading all of this um have a blast i'm not gonna do it all right so let's go ahead and take a look at ripple itself um let's see where it is from a technical standpoint and see what what we can you know see what we see let's see what we see so as you guys can see we're at 44 cents right now down about 14 and a half percent um now overall just because of the fear and uncertainty i would not recommend uh trying to actively trade this at this point in time just because we don't know what's gonna happen we don't know which way it's gonna go we don't know we just don't know what's what's gonna happen so purposely for right now i'm not going to be trading um xrp but you know as always you guys do your own research and do whatever it is you want to do um but as you can see here we had this uh descending channel which we broke out of um and then got rejected and basically we were consolidating there um just under this Fibonacci level before getting this news yesterday um and uh just dropping down right so you do see that we had that support right there that we bounced off of and now we're seeing that this Fibonacci level is holding that's a 61.8 um so if that Fibonacci level holds there we might be seeing that's what we might be seeing right at this point basically a bounce here where it might try to shoot back up and maybe you know maybe up to this level which is this this other Fibonacci level which is also the 50 cent level right so 50 cents a big whole number um and then maybe just continue lower after that so that's something that's a possibility that could happen um so that's why I'm just kind of going to stay out of it for right now um it's just a little too risky for my liking maybe if we get back above this Fibonacci level then I'll consider getting into trades or if we hear more about the case you know any updates any anything positive any positive news uh then definitely um other than that I'm not looking to trade this long term at this moment even though we are getting a bounce but like I said we could very well see a bounce here uh that pretty much up here that'll trap investors and then just kind of fall down here right um so for now I'm staying out of the XRP market as far as day trades I do hold long term positions in it um and um I haven't decided what I'm gonna do with it yet so I need a little bit of time to try to figure out what I'm doing with long term positions but uh for short term I'm not buying any more XRP and I'm not going to be actively trading XRP at the moment that's pretty much it for today guys I just wanted to go ahead and cover that because I know a lot of you had a bunch of questions about XRP and this lawsuit with the SEC I just wanted to give you guys my insight and go over this news together with you guys um so we could just review it together and uh and then look at the charts and see you know what what I'm seeing currently um but that's pretty much it guys I appreciate you guys for watching this video as always um make sure to subscribe and hit that notification bell hit that uh like button and drop a comment let me know what you guys think that what's gonna happen with XRP because I have no idea um I'd love to hear your thoughts on what you think about this and if you um think that this is something that XRP is gonna get through or if you think this is something that the SEC will will win um that's pretty much it guys I appreciate you guys for being here and watching this video I will be back with you guys tomorrow with another video as always peace and love