Even though it's been made perfectly clear that crypto is not a security in 99% of tokens the SEC continues to attack crypto on every level. Once that ruling came out the SEC then started to press NFT marketplaces saying that they were now securities. I'm sure it will come back that they are not that's like saying art you buy is a security in which most cases it is not.
However the SEC has redoubled their efforts once again now issuing an appeal against XRP which many are speculating will be a sell trap for the token.
*This article is for entertainment purposes only and is not financial advice. Do your own research before investing.
What is a sell trap?
It's when sellers are trapped into a losing trade. This is when sellers are selling off the asset but then quickly reverses itself going bullish. The idea here is that the SEC filing this will just be news and uncertainty to bring the tokens value down and once the case gets dismissed yet again the market will pick the token back up.
It's rather clear that the current SEC in power is not one that is friendly with crypto and continues to attack it in every way and every chance it can. This is a negative net sum for crypto but the SEC gets paid either way and that's what's really wrong with how the SEC operates. It issues as many lawsuits as possible in order to train and generate revenue for their lawyers.
In my opinion if you work for the SEC you are scum.