I see a lot of people saying the lawsuit is hot air- it’s not. This is NOT an attack on crypto, XRP is not crypto-currency. I think a lot of people bought into the nonsense hype men from YouTuber’s telling you that you’ll make millions off Ripple, and there’s FOMO. Ripple have also committed fraud.
Number one, Ripple has commonly made the claim XRP will be used by banks, most banks have tried XRP and said it was more expensive than alternatives, and gave Ripple a no, but they continue to spread this lie.
Ripple have also had a controlling majority of the available XRP, and have continued to sell off large portions ($2 Billion) of their holdings at huge profits while continuing to spread hype of things like Flare.
Why this is not an attack on crypto but an attack on Ripple is, Ripple is a centralized “coin or token,” bitcoin has no owners but those who choose to buy in. XRP is in totality a security, as you are buying into Ripple if you’re buying into XRP. You’re not buying into a company if you buy Bitcoin or Litecoin or Ethereum, you’re buying into a decentralized currency with different feature sets.
The second set of misinformation Ripple have muddied the waters with is “this has happened before” to SIA and EOS, who settled and paid a small fine. SIA did something very similar to Ripple but advertised it as basically exactly what it actually was, a decentralized stock into their company. Again, XRP is centralized to Ripple, The two SIA tokens were not majority owned by Nebulous. Also, SIA had registered with the SEC a security, Ripple have not. Block.one (EOS) only paid a settlement on its Ethereum based token (ERC-20), not its other offering (EOC-20). Lastly, Block.one used their ERC-20 token to directly fund their companies offerings, which is blatantly illegal. They were fined for this. The tokens were still decentralized, just the proceeds of your purchase of their coins went to central company, but the ownership of the coin was decentralized.
The reason Ripple is different is, they have lied about their offerings institutional support, centralized the token completely, and also take one look at the Howey test.
I am not saying Ripple will be wiped out and jailed, but this is much different and I would never trade XRP until this lawsuit is resolved. You’re gambling your money big time. You can try to short it, you may make a buck, but with other good offerings, why take such a high risk when the possible reward isn’t as rewarding of many other promising crypto currencies.
Just my 2c.
Number one, Ripple has commonly made the claim XRP will be used by banks, most banks have tried XRP and said it was more expensive than alternatives, and gave Ripple a no, but they continue to spread this lie.
Ripple have also had a controlling majority of the available XRP, and have continued to sell off large portions ($2 Billion) of their holdings at huge profits while continuing to spread hype of things like Flare.
Why this is not an attack on crypto but an attack on Ripple is, Ripple is a centralized “coin or token,” bitcoin has no owners but those who choose to buy in. XRP is in totality a security, as you are buying into Ripple if you’re buying into XRP. You’re not buying into a company if you buy Bitcoin or Litecoin or Ethereum, you’re buying into a decentralized currency with different feature sets.
The second set of misinformation Ripple have muddied the waters with is “this has happened before” to SIA and EOS, who settled and paid a small fine. SIA did something very similar to Ripple but advertised it as basically exactly what it actually was, a decentralized stock into their company. Again, XRP is centralized to Ripple, The two SIA tokens were not majority owned by Nebulous. Also, SIA had registered with the SEC a security, Ripple have not. Block.one (EOS) only paid a settlement on its Ethereum based token (ERC-20), not its other offering (EOC-20). Lastly, Block.one used their ERC-20 token to directly fund their companies offerings, which is blatantly illegal. They were fined for this. The tokens were still decentralized, just the proceeds of your purchase of their coins went to central company, but the ownership of the coin was decentralized.
The reason Ripple is different is, they have lied about their offerings institutional support, centralized the token completely, and also take one look at the Howey test.
I am not saying Ripple will be wiped out and jailed, but this is much different and I would never trade XRP until this lawsuit is resolved. You’re gambling your money big time. You can try to short it, you may make a buck, but with other good offerings, why take such a high risk when the possible reward isn’t as rewarding of many other promising crypto currencies.
Just my 2c.