Greenspan: XRP Not A Security But Community Still Too Aggressive

[PRIBO247]

XRP should not be classified as a security, according to
Mati Greenspan, senior market analyst at eToro. That said,
Greenspan says that the XRP community’s behavior has
been counter-productive to adoption by the banking sector.
Asked for his views on XRP, Greenspan confirmed he is
still “bullish” on the payments settlement token. In a
webinar this afternoon,  he said that the token could disrupt
the entire banking system.  He also argued that XRP should
not be classified as a security in the US, and that its
characteristics more closely resemble those of a utility
token.

“XRP is not a security, in my personal opinion”, Greenspan
said. “My best understanding is XRP is logically a utility
token [but] the SEC may see things differently.”

Greenspan nonetheless expressed reservations, principally
for the behavior of its online community. Although XRP’s
large following has been very effective in raising
awareness, it also has an aggressive side: in the
fans attempting to bully banks into adopting XRP.
“The negative side to [XRP’s online community] is
aggressiveness,” Greenspan said. “Floods of people are
attempting to force banks to accept XRP.”
Greenspan argued that this aggressiveness may be pushing
the financial institutions away. Banks that had publicly
considered adopting XRP later decided against it, largely
because of the unruly online community, he said. This
behavior may be harming XRP’s chances of mainstream
adoption .

Winning the Hashtag War
No community is quite so active as XRP’s. The self-styled
“#XRPArmy” has been vocal on a number of issues,
especially surrounding XRP’s regulatory status in the US.
They have also demanded a listing on popular
cryptocurrency exchange Coinbase.

The community’s behavior has become so overbearing that
some are beginning to block them entirely. Jackson
Palmer, the creator of Dogecoin (DOGE) , had his own
individual battles with what he described as a “toxic
dumpster fire of a community.” In December, Palmer
published an open source script for Twitter called ‘XRP
away.’ When enabled, the script automatically blocks
anyone from mentioning a user who has the term ‘XRP’
mentioned in any part of their profile.

Palmer’s experience wasn’t unique. Daniel Floyd, writing
for Coindesk , came under heavy attack from the XRP
community – not in response to any article that he had
written, but merely for approaching leading figures for
comment.

Add it to the list
Not everyone believes XRP will be adopted by the banks.
Nano’s (NANO) founder, Colin LeMahieu, told Crypto
Briefing last month that it was too slow and centralized for
the banks.
Greenspan shared some of the same concerns, as Ripple
Labs, the token’s creator still owns nearly 60% of the total
supply. This, he felt, could make it a risky asset with a high
selling pressure, making the token’s value difficult to
stabilize.
Greenspan is a long-term holder of XRP, having bought his
first tokens back in May 2013. But as he explained, the
project’s viability rests almost entirely on financial
institutions. Most of these companies treasure their public
image; they could be put off from joining forces with a
project with an aggressive and uncontrollable online
community.

Despite its sleek image, XRP has multiple problems that
it needs to iron out. Attention has mostly focused on its
regulatory status and use case; an unruly community might
also belong on the list.

https://cryptobriefing.com/