A recent rediscovery of a court document has shed new light on Ripple’s business dealings regarding XRP.
The document revealed that the company had entered into over 1,700 contracts with financial institutions and companies to transact XRP. Members of the XRP community recently resurfaced this court document, originally filed in 2023, during the heat of the Ripple and SEC case.
Per the document, the 1,700 contracts are specific agreements outlining the terms under which Ripple transferred XRP to various counterparties in commercial transactions.
Expert Analysis of Ripple’s 1,700 XRP Sale Contracts
The context of the revelation at the time was that the plaintiff and the defendant sought court blessing to dismiss certain expert testimonies that could hurt their standing in the legal proceeding. One such testimony up for dismissal was the opinion of Yale Law University professor Alan Schwartz about Ripple’s XRP sale contracts.
During discovery, the litigants had produced over 1,700 contracts on Ripple’s XRP distribution. Commenting on the dealings, Schwartz categorized these contracts into four main groups.
The first category consists of contracts in which Ripple directly transferred XRP to a counterparty. The second category includes contracts in which counterparties agreed to sell XRP on behalf of Ripple through trading platforms.
Meanwhile, the third category comprises contracts where Ripple paid for services provided by counterparties using XRP. The fourth and final category is a miscellaneous group that includes contracts that do not fit into the first three categories.
Based on his analysis, Professor Schwartz concluded that the Ripple contracts differ significantly from those described in the Howey test. He believes they do not contain provisions requiring Ripple to take any post-sale actions that could impact the value of XRP or distribute profits to investors.
However, the SEC attempted to exclude Schwartz’s testimony, arguing that his opinions were “impermissible legal conclusions” that “misinterpreted” the Howey test. Nevertheless, the court rejected the SEC’s motion, allowing Schwartz’s testimony to stand.
Community Reaction to the Significance of Ripple XRP Sale Contracts
Notably, the talks about the significance of the 1,700 contracts have been making the rounds in the XRP community. The XRP enthusiast group is interpreting this information as a bullish sign.
They believe several notable institutions have likely adopted XRP for transactions even, making a bullish case for XRP. “You’re not bullish enough on XRP,” remarked an XRP Army.
However, critics have countered that despite the apparent widespread adoption, XRP’s price has been unimpressive for years, suggesting the large contracts are not having the desired impact.
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