Ripple advocate and attorney John Deaton predict that the crypto’s FOMO will increase as the price exceeds $2
Traders will have FOMO if XRP reaches $2, according to an attorney who is on Ripple Labs’ side in its case against the U.S. Securities and Exchange Commission (SEC) over XRP.
John Deaton, managing partner of the Deaton legal firm, believes that consumers won’t desire XRP until it increases in value fivefold.
At its current price of $.48 cents, XRP may seem ridiculously cheap to those who are holding out for $1. Even worse is the fact that fear of missing out won’t set in until the price drops below $2.
Deaton’s hypothesis follows a federal judge’s order that allowed the so-called “Hinman speech” to be used in court.
In a lecture given in 2018, William Hinman, then the SEC’s director of corporation finance, argued that Ethereum (ETH) did not qualify as a security.
A federal court ordered the SEC to produce the emails in May 2023, and according to Deaton, this might be a major turning point in the case.
In all likelihood, we would have known about Hinman’s speech being authorised or approved by the SEC Ethics Office a long time ago. A “get out of jail free” pass in the form of the Ethics Chief’s approval of my speech.
In an article published last week, Deaton said that Ripple’s resistance relies on an email from the SEC that suggests there are legitimate reasons for doubting that XRP passes the Howey test in its entirety.
Regarding the email, Deaton comments, “It seems that all of the SEC staff remarks were censored as per the SEC’s request. This informs me that the claim that Howey is unsatisfied with XRP is not a direct remark from a high-ranking SEC employee, because it would elicit a response.
According to my analysis, the SEC did not make that claim; rather, a third party in the market did, and either Hinman or the email group discussing the speech made mention of it.
This is a clarification since I only want to make statements that are supported by evidence. It’s not a direct remark from an SEC official, but it shows that XRP was considered, which is just as bad. There must be a rationale for the SEC’s decision to forward this XRP opinion to the email group.”