The Impact of Lawsuits on Cryptocurrencies Adoption
Table of contents
High Demand for Blockchain Lawyers
One of the lawsuits that lingered in the Crypto space was the Security and Exchange Commission lawsuit regarding the team's involvement in Ripple's native token XRP. This case led to high demand for blockchain and Cryptocurrency lawyers. The nascent duration of this space made their fees exuberant. Likely, projects with potentially splendid ideas for the crypto space will not be able to afford to attract a lawyer. The demand of the few ones in the industry is unavoidable. This situation has affected the growth of the Cryptocurrency market.
Investors' Fear of Lawsuits
Financial services providers and research firms would never recommend investing in tokens or coins with unresolved lawsuits. This fear might lead to panic sales which could collapse the project. The new investors who had seen the high potential in those projects might be cautious about infusing funds, fearing their assets will freeze. This situation could lead to an increase in the number of dead coins in the market.
Questions on Legality of Cryptocurrencies
Due to the government's order of freezing, reporting, and blocking all accounts associated with cryptocurrency transactions, individuals and institutional investors have had their funds seized by banks. Situations like these always lead to court cases that might take years to settle. Consequently, this makes new users mindful of participation in the Crypto space. This hesitation or fear could deprive the industry of the funds needed for projects to succeed.
Distraction from Project Roadmap
In addition to attending court sessions, the lawsuits and associated financial burden may distract developers from their roadmap. This distraction directly impacts negatively on the trust users have in projects. The inability to achieve goals and follow through with the initially planned roadmaps will reduce the potential accrued profits. This failure could lead to the siphoning of funds from new projects that need money for establishment.
In conclusion, we can say that court cases are not healthy for the growth of the Cryptocurrency space. One should avoid them in all possible ways.