How will the cryptocurrency markets be affected after the Solana ecosystem's local altcoin project SOL claims that unregistered transactions are made, promoted and illegally earned?
As a result of the legal process, it is stated that it can cause serious situations to develop and have a great impact on the global cryptocurrency market. The local altcoin project SOL, which supports the growth of Solana Labs, may be affected in the coming period. It is stated that it will be traded under suspicion whether it is a security or not.
Meanwhile, Ripple Labs and its developers are facing similar charges by the US Securities and Exchange Commission (SEC). Authorities continue their claims that the native token XRP belonging to the Ripple ecosystem is a security. However, Lawyer John Deaton, regarding the XRP token holders involved in the lawsuit, warns about the future of the cryptocurrency industry. In a tweet he shared, he says that if XRP is considered a "security", hundreds of class action lawsuits will be filed. He says that not only tokens and exchanges, but also altcoin supporters can fall under this sharing and formation.
"Only the beginning if #XRP is deemed a security. Dozens if not hundreds of class actions will likely get filed - but not only the exchanges ( @coinbase was sued already) but alleged promoter of an altcoin. @Ripple was sued already over #XRP - similar to #SOL below."
Lawyer Deaton states that his legal process initiated on behalf of XRP is similar to Solana and he has been sued for them. He stressed that exchanges have class action waivers included in the settlement. He states that if the waivers given as a result of any development are approved, organizations such as Ripple, Ethereum, Stellar and Algorand may become a target. Deaton emphasized that other altcoin projects are also in danger.
He also shared the SEC's thoughts on Ripple's local altcoin project, XPR, over allegations that it is a security. It is stated that this includes secondary market sales outside of Ripple. Meanwhile, Roche Freedman LLP and Schneider Wallace Cottrell Konecky announced on July 1 that they are filing a class action lawsuit against Solana. There are allegations that Solana Foundation, Solana Labs, Multicoin Capital Management, Anatoly Yakovenko, Kyle Samani, and FalconX have been selling unregistered securities of SOL, the native token of the Solana ecosystem, since March.