- Flare CEO Hugo Philon says the two-and-a-half-year lawsuit between SEC and Ripple affected the company’s growth.
- Philon says in the years between the start of the lawsuit and now, many alternatives have emerged to Ripple’s primary use case.
- Twitter users disagreed with Philon, with many calling his analysis flawed.
CEO of Flare Labs Hugo Philon says the SEC vs. Ripple Labs lawsuit has delayed the company’s growth. In a Twitter post, Philon argued that the case prevented the company from developing further due to regulatory uncertainty.
He mentioned that while the company has gained that regulatory certainty, it will take time before Ripple Labs makes up for the two-and-a-half-year delay. According to the CEO, cross-border transactions remain Ripple’s primary use case, but the period between the start of the lawsuit and the end has seen the rise of alternative competitors to Ripple’s business.
However, the CEO maintained that even though the company is behind in development, it still has much room for success. According to him, the company could see patronage from areas underserved by traditional finance. But the FTX collapse, Philon believes, will affect this due to increased suspicion of crypto.
Since the Twitter post, the CEO has seen criticisms from all quarters, with many calling the CEO’s analysis flawed. A Twitter user (@SugarKoat) countered that Ripple could not have sat idle for the duration of the lawsuit.
Another user (@Panosmek) also says that Philon’s statement that cross-border transactions are Ripple’s primary use case is flawed. According to him, Ripple’s focus was always on DeFi and DEX. Similarly, another user pointed out that a regulatory issue in the U.S. doesn’t mean the company can’t continue to grow in other countries.
In related news, XRP advocate John Deaton reiterated his confidence in a Ripple victory if the SEC appeals the court’s judgment. Elsewhere, XRP has lost its bullish steam as the excitement of the win against the SEC fades away.
Data from CoinMarketCap show that the token’s value has dropped by 2.88% in the past 24 hours. Additionally, the token has shed 13.16% in the last seven days.
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