Update on the SEC and Ripple lawsuit
(ADA) Ripple requires the SEC to provide employees with securities approval documents. Typically, SEC employees must be approved prior to purchasing any securities to avoid conflicts of interest. Ripple is making this request to see if SEC employees have requested the purchase of XRP.
If the SEC approves an employee to purchase XRP, it means that XRP is not a security. On that basis, Ripple can, as a basis against the SEC, counter that if XRP is an unregistered security, why should SEC employees be bought. This request from Ripple will put the SEC in a dilemma.
However, the SEC did not accept publication of this document. The SEC argued that the document had nothing to do with the lawsuit against Ripple. Second, the SEC only authorizes employee purchases of securities to avoid conflicts of interest. Even if an SEC employee buys XRP, they cannot prove that XRP is a security or not.
The court has yet to rule on this motion from XRP. Ripple has certain advantages. If this lawsuit is won by Ripple, it will be good for the entire crypto market. It will demoralize the agency that specializes in suppressing crypto businesses.
Reasons for long-term investments
In order to invest in a coin or a project we have to consider many factors. With a long-term average investment, Thuan chooses a coin for a long-term investment. One of the factors is that we need to find out information and reviews about this project or coin. If there is this assessment, it is necessary to have confidence in the development of this project in order to choose a long term investment. Beliefs are based on informed information, knowledge, and judgment. And what will cause these coins or coins / tokens to grow.
Next there are perspectives, knowledge about the project, the network and the mission of this project. Because when investing in BTC it is not just technology, but also many factors such as economy, human psychology, society, … Without trust and knowledge, investors are very susceptible to Fomo, easily influenced by information in the market and make wrong decisions.
As with the consensus opting for long-term investments like BTC, ETH, ADA and some other coins from 2017 onwards, Thuan also chooses based on the factors mentioned above. At the time of purchase, the coins were peaking and many thought that at that time there was no longer any way for them to invest and make a profit. But so far these coins have grown very strongly and most purchase prices are profitable.
The coin ADA, SOL or even ETH, which has received a lot of attention recently, has also grown significantly lately. These are different development platforms for development projects. These coins have all gone from small ranks to the top 10 and high positions in terms of market capitalization.
Another factor is that as the project grows, the community’s trust is reflected in the current involvement and staking. As with ETH, staking will not be possible until ETH 2.0 has been completed, but participation in staking will increase. Ha ADA has long been held by the community and is up to 71%. The latest strong growth coin, SOL, has staking amount of up to 74.7% of the amount of SOL on the market.
If the community believes in long-term hold, the coins staked on will reduce the supply on the market. If demand continues to rise, prices will rise. Additionally, the majority of altcoins, large and small, are still following the Bitcoin trend. Therefore, in order to hold altcoins, investors must also have confidence in the growth of BTC.
Previous BTC halving seasons or hypothetical models of BTC growth are still true and widely accepted. This growth in 2021 was also predicted and believed by investors. However, if BTC changes and at that point it turns into winter, the community will change their beliefs which can change the previous rules of BTC. Rules or hypotheses need to be reconsidered.
Recently Treasury Secretary Janet Yellen said the United States was well on its way to bankrupt its debt in October, but one person in the US House of Representatives said, “We cannot go bankrupt because we are insolvent. We have the option.” to print a lot of money when we have to spend money … ”
It can be seen that the long-term trend of the USD or most other fiat currencies, whether Bitcoin is fluctuating up or down, is the trend of inflation and depreciation. Because of this, wealth grows.
Short-term investments are very difficult to predict. As the news of the recent surge in inflation caused some assets like stocks, gold, … to fall in price due to fears that the Fed will raise interest rates. In the longer term, however, rising inflation will be an important factor in wealth growth. Therefore, long-term investments make it easier for investors to make predictions with higher rates of accuracy.