Ripple (XRP) is a typical case in the cryptocurrency world where retail investors are harvested due to compliance risks.
In December 2020, the U.S. Securities and Exchange Commission (SEC) officially sued Ripple Labs and its two executives, accusing them of raising over $1.3 billion through the issuance and sale of XRP in an unregistered manner over a period of 7 years, violating U.S. securities laws by treating it as "unregistered securities."
Once the news was announced, the price of XRP plummeted by more than 50% in a short period, and many mainstream cryptocurrency exchanges around the world urgently delisted XRP trading pairs to avoid risks, directly causing retail investors holding XRP to lose liquidity, making it difficult to sell and stop losses, leading to huge losses in an instant.
This lawsuit has lasted for several years, during which the price of XRP has fluctuated violently around key court hearing points, with speculators taking advantage of both positive and negative news to engage in frequent trading, buying low and selling high, harvesting retail investors who chase prices up and down.
In 2023, the court made some favorable rulings, determining that the behavior of retail investors purchasing XRP does not constitute a securities transaction, but the characterization of sales at the institutional level remains controversial, and the compliance uncertainty of XRP has not been completely eliminated, with the subsequent price still at risk of being manipulated by news.
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The crypto market is moving with steady momentum today. Major assets are showing healthy consolidation, while strong projects continue to build quietly in the background. This phase is about patience, discipline, and smart observation rather than hype.
Long-term participants are watching liquidity, volume, and fundamentals closely as the market prepares for its next direction. Calm markets often reward those who stay consistent. 🚀👀
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Akita Inu Coin (AKITA) is a typical follow-the-trend MEME coin in the cryptocurrency space, born from the hype surrounding Dogecoin and Shiba Inu Coin. From beginning to end, it has no substantial technological support, practical applications, or commercial value, surviving purely on community sentiment and retail investor speculation.
At the launch of the token, the operating team exaggerated on social media with buzzwords like 'the next thousand-fold coin' and 'the new leader of animal coins,' creating a false sense of community consensus that attracted many retail investors eager for quick wealth. With the influx of retail funds, the price of Akita Inu Coin experienced a wave of irrational surge in a short period, allowing some early holders and promoters to quietly raise prices and sell off.
After the promoters completed their cashing out at high levels, the market lost financial support, and the coin's price subsequently began a steep decline, plummeting more than 99% in a short time. After that, the trading depth of the token continued to shrink, liquidity nearly dried up, and it ultimately became an unnoticed 'air coin,' with the vast majority of later retail investors facing substantial losses or nearly complete loss of their principal.
The collapse of Akita Inu Coin is a microcosm of the burst of the MEME coin bubble in the cryptocurrency space, also confirming that altcoins lacking value support are merely tools for promoters to harvest retail investors.
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