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Blog: The Million Dollar Question

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5 hours ago, enrique11 said:

Welcome back!

Just my opinion, not financial advice:

A security is basically just a funding mechanism for the issuer of that instrument. That's why the vast majority (honestly, of all the ICOs I've seen, I haven't seen any exceptions - they're all securities) of ICOs are securities - they are used to raise capital for the issuers of those tokens. If you are not donating your money to an company/organization by participating in an ICO, then you must have an expectation of return.

XRP is a security. Ripple can sell XRP to raise funds. The more Ripple succeeds, the more this should theoretically be reflected in the price of XRP.

XRP being a security and the same for other cryptos is not necessarily a bad thing. Don't forget that Ripple is one of the few that tries to stay in top of compliance. XRP being a security will make things easy in the long run because the regulations have already been established for securities and this will facilitate a quick entry into this market for Wall Street. Having an ambiguous asset class like cryptos not deemed securities will require more work in my opinion to determine exactly what they are how they should be regulated and could definitely prolong institutional investment and adoption.

You really love your XLM. 

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On 5/25/2018 at 5:51 PM, Mr_Cambridge said:

You really love your XLM. 

It's safer from a regulatory standpoint. Also the protocol is beautiful it would be a shame to see such a protocol die because of lack of support - that's primarily why I invested a lot in it -because of the protocol. It's easily one of the best protocols in this space in my opinion (not financial advice - gotta put a little sh*t disclaimer because I live in the  litigious U.S.).  It remains to be seen how it will function at scale - same goes for Ripple's protocol.

Edited by enrique11
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Very sorry for your loss [mention=10253]buckor[/mention] Great to have you back 
So how about this thought... if XRP were to completely become the bridge asset for banks, FIs etc. and suppose all speculators were out (I know it won't happen, but stay with me) how much sense would it make to call XRP a "security" then? After all, that is it's stated "use case", right?
This is truly one of the cruxes of this debate. XRP is a digital utility asset...it does not represent a position in Ripple and is not solely reliant upon Ripple for its success.

When we stop and look at XRP there is no way it is a security.

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I think if it is deemed to be a security, there will be some leniency on current investors who already own the asset (There are some very high capital/salary requirements to being an accredited investor, without which you can't own/hold securities). I don't mind it being declared a security as long as current HODL'ers aren't forced into selling due to this decision. I'm not entirely sure how securities law works in the USA, but it would make sense if XRP had some exemptions - especially relating to the current court case. It would just be unreasonable for XRP to be held responsible for the price dips of all the people that bought at the ATH mania and then sold, when people buy it they know exactly that it's not a stock, thats why it's not called one and Ripple don't have the same sort of control over the coin price like companies do with a stock, but in comparison to other crypto's their work does have a huge influence on XRP value.
Also, XRP is supposed to be used in the back end and not seen by the average consumer - this makes sense and shouldn't harm the ecosystem.
In the DAO report the SEC took no action against Slock.it or others running the DAO. They also never declared ethereum, its network, or any other digital asset a security based on their findings. The DAO lost the argument because it was designed to operate like a traditional company where each DAO token represented an ownership stake, a voting right, and the ability to profit from the DAOs operations.

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Nice work as always.
With regard to BG's statements about being very long XRP and Coffey using that as investment advice, did you check the timing of that statement against when he had his position?  I remember when I looked at this a few weeks ago that it seemed to me that BG made his statement after Coffey had sold his stake.  Unless there was an earlier similar statement by BG that I didn't find, I think that whole part of the argument is made up.
Thank you! No, I have not looked at the correlation there...I will have to do so. What a baseless argument if the comment was made after he sold.

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its hard for me to think that the super intelligent guys that created this company never bounced the idea off each other that they might be 
selling unregistered securities. ah do you guys think we might be breaking the law here ? you gotta think they consulted some kind of expert for the ok.
not a small detail to overlook
Seems like common sense doesn't it?! And, as stated in the blog, I doubt others like WU, MG, etc, would buy/use XRP if there were any regulatory doubt.

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2 hours ago, enrique11 said:

It's safer from a regulatory standpoint. Also the protocol is beautiful it would be a shame to see such a protocol die because of lack of support - that's primarily why I invested a lot in it -because the protocol.

Safer from a regulatory standpoint? That tickled me to bits. 

Nothing is safer with the Jed i.

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1 hour ago, Mr_Cambridge said:

Safer from a regulatory standpoint? That tickled me to bits. 

Nothing is safer with the Jed i.

If XRP gets regulated as a security, I'm certain we'll never hear from you again, as you will have laughed yourself to death over the matter.

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7 hours ago, enrique11 said:

If XRP gets regulated as a security, I'm certain we'll never hear from you again, as you will have laughed yourself to death over the matter.

Any chance you could just chill and let people make their own minds up?  You've all made your points.  After all none of it is known, or certain, or can be changed one iota by any of us.

If you want to trust in Jed that's fine....   I think I will put my trust in the professionals at Ripple to have done their homework and be doing all the right things in terms of regulation.

But it doesn't matter what any of us believe....  this will play out one way or the other and then we will know.

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My condolences. I wish you and all the loved ones strength for the time to come.

Nice to read you again since my twitter was banned. 
Thank you very much.

It seems Twitter is throwing out even more issues for XRP fans...now they are unfollowing all the people you have followed and won't let you follow anyone again. When you try, it just doesn't work. Twitter has got to get its act together.

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