The Cryptocurrency world Deliberates On The Security Status Of Ripple’s XRP

[PRIBO247]

Charlie Shrem is no stranger to controversy. He is an early
Bitcoin investor and entrepreneur who is known for being
strongly opinionated on social media and became infamous for
having been involved with the notorious Silk Road website
which landed the millionaire in prison. After his prison
sentence, he founded the cryptocurrency advisory service
CryptoIQ and the site follows suit with his hard-hitting style
and blunt personality.

Recently, Ronald Tichenor of the CryptoIQ blog made a
startling accusation with the headline “XRP is a Security, but
Ripple Doesn’t Want You to Know.” There has been a lot of
worrying about SEC action and how it might all shake out for
the cryptocurrency space and XRP’s status regarding whether
or not it will be considered a security is one of the forefront
concerns among cryptocurrency investors.

Back in the summer Ripple CEO Brad Garlinghouse laid out his
“three key arguments” why XRP is not a security at the CB
Insights Future of Fintech conference in New York City.
Garlinghouse’s argument can simply be summarized with
these three points: XRP is decentralized and separate from
Ripple the company, no one thinks they are buying shares of
Ripple, and XRP solves a problem which inherently makes it
not a security.

Tichenor refutes each of these arguments by providing
opposing ideas but also using Ripple’s own words against
them. He takes a pretty hard stance and points out all the
reasons as to why Ripple could easily be labeled a security.

“Ripple created the coin and then sold it to build its
platform and fund its operations. That’s a security by
the SEC’s definition. It’s a security according to the
Howey Test. Ripple’s attempts to distort or otherwise
obfuscate this truth betrays the fact that they know it
should be a security.”

The harsh take Tichenor gives is actually more constructive
than it first comes off as he seems to be offering advice to
Ripple rather than rooting for their demise.

“Ripple should be openly acknowledging the
perception of a problem rather than being dismissive
of it. Ripple should be proactively engaged with the
SEC, and the public needs to see that. There are too
many ways Ripple could lose right now.”

The major criticism that Tichenor is dishing out is that Ripple
is not being upfront about possible coming SEC decisions and
that the company should taking steps to communicate with the
SEC in an open forum.

The chatter of the SEC’s looming decisions and the possibility
of XRP being called a security resulted in an interesting social
media exchange between analyst, investor and Forbes
contributor Joseph Young and Binance’s CEO Changpeng
Zhao.

@iamjosephyoung tweeted, “Coinbase has been listing
everything in crypto apart from XRP. It says it may add every
asset above a certain level like the stock market but still no
XRP. Savage. On a serious note, it’s likely the pending federal
court case against Ripple is holding them back for now.”

This tweet prompted a response from none other than
@CZBinance , Changpeng Zhao himself. “The court case may
take years. But if XRP is ruled as a security, it would seriously
hurt a lot of US users, and to a certain extent, other users
around the world too. It certainly doesn’t look like a security to
me, but that’s just one person’s opinion.”

When a United States SEC official said that ETH was not a
security, many people in the cryptocurrency space rejoiced.
Now, many are on the edge of their seats hoping that XRP gets
a similar nod so that the rule of law in the sector will become
more clear.

Source : https://zycrypto.com/