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Ryu

Centralized Ripple Is Probably a Security Token

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Ha... I am vindicated...

  • The good news is that you folks are the first on the block to own a new asset class of security tokens... XRP.
  • The bad news is that this will create confusion for the next 6-12 months.

:-)

So, the question is... were Ripple employees given guidance on whether XRP was a security token or not? I bet they were, as Ripple people have been vociferous in their statement that XRP was NOT a security token. 

  • So, which Ripple people sold XRP during the Christmas peak?
  • What did they know that we did not?
  • When was Ripple rebuffed by Coinbase?
  • ..

Oh my, so many questions!

--

It is time that the banking establishments take over Ripple.

Edited by MaxEntropy

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1 minute ago, MaxEntropy said:

The impact is... uncertainty for the next 6-12 months. Ripple is breaking ground with this initiative, again.

What would your guess be? Delisting of XRP? Etc...

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I like how they quote Lawson Baker as if he was the Perry Mason of crypto 

Don't miss out the new Bitcoin Diamond Cash, soon available on Coinbase now that forks are supported.

Edited by VaR

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FUD article.

Bitcoin is more centralized than XRP, given that only a tiny percentage of Bitcoin accounts hold the vast majority of coins and only a few Bitcoin mining pools control validation of transactions. The bulk of Ripple's XRP is held in escrow and released via smart contracts at a rate that has minimal impact on current pricing.

I would go on and on refuting each claim in this article, but every item in it dissing XRP is a rehash of some previously refuted FUD.

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I think if XRP is deemed a security, it will cause a lot of FUD (and with good reason) among many "investors."  It would also potentially materially impact liquidity.  Can you imagine if exchanges around the world started delisting XRP because they did not want to deal with the regulatory headaches?

The good news is if Ripple is able to deliver on 2018 being the year of XRP (in terms of usage, not price), it may not matter.  This is why institutional usage is important.

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Yeah, if the SEC is anything like the IRS or worse, most cryptos will certainly be deemed securities using very broad standards/interpretations. Just like the IRS to tax investors who have never cashed out to stable fiat, but to treat exchanges of cryptos as if they had been cashed out to fiat and then reinvested into another crypto and profits had been realized and taxed as maximum capital gains because Bitcoin had been held less than a year before buying your altcoins. Which Americans are going to invest in altcoins if you're getting taxed at maximum capital gains just to purchase altcoins if any "profits" have been realized?

 

The irony of the situation is that some banks will eventually want to issue fiat currency tokens, but wait... didn't the IRS deem all cryptos virtual property assets? How is this going to be reconciled? Will the IRS give Banks a special exemption to classify issues fiat tokens as currencies? Or will they give everyone a break?... I doubt the latter.

Edited by enrique11

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Guest

[–]JomadoSumabi 5 points 29 days ago 

For what it’s worth, on CNBC last night, one of their “experts” said XRP is definitely a currency and not a security.

Edited by Guest

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The issue is that Ripple is on the 'bleeding edge' of the crypto space. Coinbase has clearly rejected the XRP token for a reason. Naturally, we would like to know the 'thinking' behind the Coinbase decision, because it could/will affect how we think about other cryptos, in general. My concern with Ripple management is that THEY ARE the closest to the securities and regulatory thinking because:

  • Ripple has in-house expert guidance on these topics
  • Ripple has been involved with this kind of investigation, in the early days
  • Ripple has been schmoozing with the financial sector
  • ..
  • Ripple is connected...
  • ..
  • So, why would Ripple management put themselves in a position, where they could be rejected, and the information around a possible deal leaked? 
  • Why?

The details here, will provide clarification.

Ripple should be acquired by the financial sector... then, these failures to execute would be avoided.

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