Filecoin has grown tremendously for the better part of 2021 with a growth rate of 70% recorded within three days. However, financial analysts project that a recession is looming in the coming days.

Filecoin has been one of the best performing cryptos in the market in 2021. This crypto made a name for itself in the market through its native token FIL. This token achieved great yields for the better part of the year. However, despite its latest performance, statistics show that a recession period may be looming nearby and investors are becoming uncertain about their returns.

Filecoin’s Growth

The growth of Filecoin started after it integrated Chainlink, which is an oracle service. This integration enabled Filecoin to automate their storage systems and they were able to easily link Filecoin networks with well-performing blockchain contracts. The merger also created a 3.0 infrastructure for FIL, which made it easy for developers to make computations outside the chain.

The announcement of Filecoin’s merger with Chainlink increased the price of the FIL toke by 67%. This growth rate was historical in the blockchain market because even though a new token, FIL was able to rank above major cryptocurrencies in the market in terms of market capitalization. Before the merger, the FIL price was going for $82.60 but this rose to $137.80 after a short time.

The merger was not only helpful in increasing the yields for current investors but it also helped to attract new investors to buy the token. In the period for the merger, the social media presence for Filecoin also increased with a record high percentage of 2600%. This move also gave Filecoin a mention on Santiment as one of the most prominent emerging trends.

Whilst this price shoot was good for Filecoin, it can be very detrimental to investors in the long term because the prices will balance themselves due to the forced of demand and supply.

Filecoin’s Recession

One of the metrics that have projected the looming recession of Filecoin is Momentum Reversal Indicator (MRI). The MRI index indicated that the price growth was about to end after a decline in demand. However, the slow growth or decline will be evident only when the Filecoin prices reduce to $124. The expected redundancy projections are expected to lower to 61.8% or even lower to 50%.

However, the metrics do not mean that the prices mat not rise again in future. Filecoin’s prices may continue to grow beyond their current limit, making the move even more favorable to investors.

The United States Securities and Exchange Commission’s decision to file a lawsuit against Ripple Labs was a big deal, perhaps, even unprecedented. Not only because it targeted XRP, one of the crypto-market’s biggest and most-popular altcoins, but because the defendant’s executives Brad Garlinghouse and Chris Larsen were both made parties to the same as well.

For a case of this nature, that is unheard of. By extension, it also means that whatever the case’s ruling might be, the judgment will have a precedential aspect to it. And, it will have far-reaching implications.

For starters, why did the SEC choose to charge Ripple executives personally? No one knows for sure, not even the SEC, but popular attorney Jeremy Hogan is one of the many who has offered a guess. According to Hogan,

“In my experience, you bring in Brad and Chris because you want to apply a lot of pressure on Ripple to get this resolved.”

“There was also a lot of money involved in the sale of XRP,” Hogan claimed, alluding to the speculation that the SEC might have been interested in disgorging profits in the present case.

Alas, the attorney feels that the SEC’s decision to do so has backfired badly since its actions have opened the agency up to all sorts of discovery requests from Ripple and its execs because there is a “knowledge requirement” that needs to be fulfilled. The same can be evidenced by Ripple’s set of motions requesting the court to compel the SEC to turn over internal docs and communications regarding not just Ripple and XRP, but Bitcoin and Ether too. Simply put, one can argue that the SEC may have gotten more than what it bargained for.

Looking back, Hogan concluded, the SEC will look at these actions as a “mistake.”

What does this mean? Well, that depends on what the final judgment will be. Thanks to the one-of-a-kind nature of the case, the case’s ruling will have precedential value. Ergo, if the ruling is unfavorable to the SEC’s allegations against Larsen and Garlinghouse, the SEC will have to tweak its legal strategy for the next lawsuit.

Will there be a next lawsuit, however? Yes, said Hogan, with the attorney implying that the SEC’s actions have opened Pandora’s box on the question of regulatory agencies “overreaching” themselves. Especially if XRP, at the end of the lawsuit, is indeed judged to be a security.

Such a ruling will be the beginning of a slippery slope, he added, with the attorney arguing that,

“At that point, nothing is safe. You could be sued for anything.”

If that wasn’t enough, Hogan also addressed the question of whether XRP holders would have any cause for action owing to the value they have lost since the lawsuit was filed by the Jay Clayton-led SEC. Citing the case filed by Deaton back in January, the attorney asserted that if the agency’s commissioners voted in good faith to sue Ripple, then the agency is protected by sovereign immunity.

The U.S. Securities and Exchange Commission (SEC) is voicing opposition against allowing XRP holders to intervene in its lawsuit against Ripple.

In a letter to U.S. District Judge Analisa Torres of the Southern District New York, the SEC reasons that if the court grants the motion, other XRP holders, including large class investors who have already sued Ripple in the past, will likely want to join as intervenors in the case.

“If the Court permitted Movants to intervene, ‘It would be logic-bound to allow all investors and interested members of the public with differing viewpoints to intervene in the underlying actions,’ creating an ‘avalanche’ of claims and ‘near-certainty of undue delay, complexity and confusion…’

This scale of intervention, ‘Would cause incalculable confusion, add unmanageable complexity, and bring this Court’s review and administration of the underlying actions to a halt.’” 

Lawyer John Deaton earlier filed a motion to intervene on behalf of 10,000 other XRP holders in the SEC proceeding against the San Francisco-based blockchain firm, in which the regulatory agency accuses Ripple of unlawfully selling securities in the form of XRP.

Ripple, on the other hand, says that XRP holders should participate in the litigation. In its letter to Judge Torres, the startup cites the need to clarify the ambiguities in SEC’s complaint.

“SEC’s amended complaint fails to explain whether the SEC has alleged and will seek to establish in this litigation that XRP is an investment contract per se, and thus a security per se, or instead that Defendants’ sales of XRP resulted in an investment contract based on the circumstances of those sales. 

Given this ambiguity, and the potential precedential impact of this litigation on non-parties, Defendants agree that Intervenors should be permitted to proceed with their motion to clarify this point.” 

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