Ripple partner MoneyGram gave bad news!

The first hearing of the securities case against Ripple took place today. One of the most striking statements in the hearing is undoubtedly the allegation that Ripple directed to the US Securities and Exchange Commission (SEC).

First Hearing in Ripple Case

Ripple lawyers stated that the SEC met with many cryptocurrency exchanges and cryptocurrency companies regarding XRP in 2019 and before. The critical point of these negotiations was that the SEC did not warn the relevant companies about this, although the Ripple investigation continued at that time.

The SEC argues in the case file that XRP is a security and Ripple has been generating revenue from the sale of it for years. Ripple, on the other hand, emphasized that there is uncertainty about this and that even the SEC is aware of this and does not tell the exchanges that it is actually discussing that XRP is a security.

MoneyGram Abandons Ripple

While this news seems relatively positive for Ripple, there was some pretty bad news from one of the company's biggest partnerships. MoneyGram, where Ripple even bought millions of dollars of shares, will no longer work with Ripple because of the lawsuit.

In the report, which announced the financial balance for 2020 by MoneyGram, it was emphasized that there are no plans to work with Ripple for 2021. MoneyGram emphasized that Ripple will not receive the XRP payments it makes to the payment giant as a market development fee. MoneyGram cited the reason for this as the uncertainty created by the SEC lawsuit.

Partnership Racked Up?

Ripple pays a certain amount of XRP to MoneyGram each period, emphasizing that this is the market development fee. It is among the allegations that MoneyGram even established the partnership in question for this reason. Now, the fact that this income will not be paid and accepted by MoneyGram shows that Ripple's partnership is in theory shelved.

In the statement made by the company, it was also stated that Ripple has received a market development payment of $ 12.1 million so far. It is also unknown whether MoneyGram will be penalized for these in a possible bad result.

The XRP price, on the other hand, rose with relatively good news from the hearing before this development, and is up 3.8% as of the time of this writing. It is seen that XRP price has increased by 10% on the chart of the last 24 hours. How the MoneyGram news will affect Ripple will be clear in the long run.

Ripple Made The Expected Sale but XRP Price Affected?

Ripple has sold some of its MoneyGram shares.

In January 2018, the partnerships between blockchain giant Ripple and payment giant MoneyGram were on the agenda, and the XRP price had its share of the partnership. Within 3 years, two companies achieved great works. In 2019, Ripple made its first investment in MoneyGram. However, the latest move raised questions about whether the partnership will end.

Ripple Sells MoneyGram Shares

The news that surfaced last week claimed that Ripple will sell one third of the shares it started investing in 2019. Ripple owned 6.22 million of MoneygRam shares, or 8.6 percent of the outstanding shares. However, with the last move, this ratio has decreased considerably.

Ripple Labs has sold the bulk of its 2019 investment in MoneyGram, according to the latest reports. Ripple Labs was able to sell 2,264,113 shares of MoneyGram (MGI) from November 27 to December 4. The technology firm earned a total of $ 15,303,792.60 from sales.

On the other hand, MoneyGram's stock value recently increased from $ 2.94 on October 1 to $ 8.53 on November 23. However, as a result of the news about Ripple 's sale, MoneyGram shares fell to $ 6.54.

 

Is the Partnership Ongoing?

After the developments in 2019, there has been a lot of speculation that the partnerships of the big company in 2020 were broken or that the ties were loosened. However, a Ripple spokesperson told Cointelegraph, “Ripple is a proud partner of MoneyGram's digital growth transformation. The final move is a purely logical financial decision Ripple has taken to make some gains in its MGI investment, and is in no way a reflection of the current state of our partnership. used the expressions.

Therefore, according to the statements, there are currently no problems in the partnership between MoneyGram and Ripple Labs .

XRP Price

There is no clear explanation as to whether the XRP price will be affected by these announcements. However , with the effect of the decrease in Bitcoin , corrections are experienced in all cryptos. Still, XRP, the third largest cryptocurrency in terms of market volume, experienced the best performance of the last 3 years despite corrections and moved its price from $ 0.29 to $ 0.78.

In addition, if BTC continues to increase, it is thought that XRP will see higher levels along with all crypto .