Why Ethereum Classic (ETC) Is Popping Off – Benzinga
Ethereum Classic ETC/USD is trading higher by 6.3% to $19.86 Thursday afternoon. Shares of several altcoins are trading higher after a U.S. judge has determined that Ripple's sales of the XRP token do not constitute an offer of investment contracts.
So What Happened?
The determination, bearing potential ramifications for the wider cryptocurrency sector, was derived from a comprehensive evaluation of the economic landscape and overall context surrounding the issuance and trading of XRP by Ripple. The court employed the Howey Test, a well-established benchmark employed to ascertain the eligibility of specific transactions as "investment contracts."
This assessment, originating from a landmark U.S. Supreme Court ruling in 1946, entails a meticulous scrutiny of the object of a contract, transaction, or scheme to ascertain its classification as a security…Read More
What Else?
The judge's decision regarding Ripple could be interpreted by some investors as a favorable development for the broader cryptocurrency industry. This positive sentiment may spill over into other cryptocurrencies, leading to increased demand and subsequently driving up their price.
The ruling could be seen as a precedent-setting event, leading to speculation that similar favorable judgments may be made in other cryptocurrency-related cases. Such speculation could fuel increased buying activity across multiple cryptocurrencies as traders anticipate potential positive outcomes in future legal proceedings.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.