Ripple’s Triumph Overshadowed by LBRY’s Demise

In a stunning turn of events, Ripple celebrates a significant legal victory just as another major blockchain platform, LBRY, announces its shutdown.

by Faruk Imamovic
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Ripple’s Triumph Overshadowed by LBRY’s Demise
© Getty Images News/Jack Tylor

In a stunning turn of events, Ripple celebrates a significant legal victory just as another major blockchain platform, LBRY, announces its shutdown. The parallel outcomes have raised questions and prompted reactions within the cryptocurrency community.

A Dual Day of Crypto Drama

On October 19, the U.S. Securities and Exchange Commission (SEC) declared its intention to dismiss all claims lodged against Ripple's CEO, Brad Garlinghouse, and executive chair, Chris Larsen. This decision marked a monumental turning point in the ongoing legal battle initiated by the SEC against Ripple in late 2020.

However, this day of triumph for Ripple was tainted by the somber announcement that LBRY, a pioneering blockchain file-sharing and payment network, would be ceasing operations. LBRY, celebrated for its creation of Odysee – an open-source, decentralized alternative to major video-sharing platforms like YouTube – cited debts amounting to "several million dollars" as the reason for its dissolution.

The hefty debts owed to the SEC, its legal team, and a private debtor became insurmountable, even after the SEC reduced the $22 million penalty to a more manageable $111,000.

The Ripple Effect in the Crypto Community

The crypto community, always vocal and passionate, was quick to react to these contrasting outcomes.

Ashley Prosper, a prominent XRP influencer, took to X (previously known as Twitter) to express her sentiments: “Whilst we celebrate another massive win for Ripple, let’s not forget the damage the SEC has already done to crypto”.

She went on to voice hope that the LBRY app, along with its native token, would find a resurgence given the increasing instances of censorship on platforms like X and YouTube. Another user, Slorg, lamented LBRY's fate, pointing out how a once-thriving Web3 startup with substantial user adoption had been "regulated into oblivion."

What Lies Ahead for Ripple?

Even as Ripple basks in its recent victory, there are indications that its legal skirmishes are far from over.

Eleanor Terrett, a journalist with Fox News, shared insights from legal experts, hinting at impending battles during the penalty phase. The SEC is anticipated to push for a hefty penalty related to Ripple's $700M+ of institutional sales, seeking a sizeable amount primarily for its "bragging rights." The dual narratives of Ripple and LBRY serve as a reminder of the unpredictable terrain of the cryptocurrency landscape.

While one company revels in a hard-fought victory, another faces the repercussions of stringent regulations. Only time will tell how such scenarios play out for others in this rapidly evolving sector.

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