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What if XRP is security?

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How can XRP possibly be a security? Right now there are two former SEC officials defending Ripple. If they thought for a second that XRP was a security then why are they defending them in court? They know better than anyone else. If the SEC announced that XRP is a security it would be contradicting itself.

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1 minute ago, Black said:

Be it a security or not, I think people would probably still use it because it’s about the technology. Nobody else has been able to do instant settlement the way Ripple does it.  XRP is revolutionary.

If XRP is a deemed the same classification as a stock certificate, regulations will disallow XRP to be used in the way that it's intended now. 

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44 minutes ago, Hodlezerper said:

The value would likely collapse and Ripple the company will lose the war of global payments as they would fade away to a banking software company and the IoV would die as we imagine it today. 

 

Not investment advice, just my opinion.

The SEC would be dumb beyond belief if they unintentionally destroy such a valuable tech. just to apply laws stemming from the stock market crash of 1930 that was designed to protect investors against scams and market crashes by limiting the offerings of certain instruments to a very small set of "qualified" investors, requiring companies to pay very expensive annual registrations fees (1 to 7 million USD), and adequately inform investors about securities so that they can make informed decisions before buying securities on the secondary market.  If XRP is deemed a security, this could allow some foreign company or country to step in and fill that void.

Edited by enrique11

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3 minutes ago, Kiwi said:

If SEC says XRP token is security Ripple will rename it to Ripple. That way it is not security any more.

 

IMO, I believe the reason XRP would be deemed a security is because of a lot of new uninformed investors thinking XRP is going to make them rich and believing that XRP's success is a function of Ripple's success.

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17 minutes ago, Kiwi said:

If SEC says XRP token is security Ripple will rename it to Ripple. That way it is not security any more.

 

OK, assuming you're correct, let's look at the logic of this:

If XRP is inevitably going to be deemed a security, how will a closer association  to Ripple the company help ripple (new name for XRP) avoid that designation, let alone make ripple a non-security once the SEC has said it is just because of a name change?

Edited by enrique11

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You guys discuss this for weeks, it's becoming a rethorical question like:

"If someone owns a piece of land, do they own it all the way to the center of the earth?"

Xrp just do not meet the criterias of a security, It's not written but we all know it, poor newbies reading all this.

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19 minutes ago, namini said:

You guys discuss this for weeks, it's becoming a rethorical question like:

"If someone owns a piece of land, do they own it all the way to the center of the earth?"

Xrp just do not meet the criterias of a security, It's not written but we all know it, poor newbies reading all this.

Not financial advice, just my opinion.

I don't agree with this.  The SEC is here to protect investors, regardless of the level of utility that XRP has or not.   If investors believe that XRP's success depends on Ripple's (the company) success, and that XRP will make them rich, then the SEC can step in to protect them from themselves. A lot of new investors don't understand that XRP's success depends on it's utility by those that adopt it.  Of course Ripple plays an important role indirectly in facilitating that adoption, but the ones adopting and possibly using XRP are the FIs, so XRP's success directly, uniquely depends on FI adoption and usage, but there are many misinformed investors equating XRP's success with Ripple's success, and certain youtubers aren't helping the situation by saying XRP is going to be worth such and such because it's inherently tied to Ripple's success.  The SEC might step in to protect investors, IMO, especially if "promoters" of XRP that tie its value to Ripple's success keep this up and get more uninformed investors on board.

Edited by enrique11

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This has been discussed at length, HOWEVER, I do like Suzi's  possibility of an IPO by Ripple and buying back XRP by offering one share per XRP. You can listen to the whole video or from 21.09 . Who knows if this would be a real possibility in the event of XRP being classified as a security?

 

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34 minutes ago, namini said:

enrique11

The SEC can be sued (and has successfully been sued in the past), just like anyone else. I won't discuss this anymore as I find it doesn't go anywhere, people discuss about it for weeks and will continue, but don't know what they're talking about most of the time (I'm not saying this about you but generally), I'll just stick to formal declarations.

“That’s why we’ve added them to the exchange, If they were a security, you’d have to go through a different process.”

Not financial advice, just my opinion:

Doesn't go anywhere?   Discussion often helps clarify by laying out a bunch of possibilities and allowing us to try to scrutinize them objectively, regardless of our personal opinions.

I know the SEC could be sued, but we would likely lose because the SEC's job is to protect investors, and IMO promoters of XRP who tie XRP's success to Ripple's success are confusing investors by making them think that XRP's value is only a function of Ripple's success.

IMO, the promoters of XRP that tie its success to Ripple's should shut up...they are making things worse.  The SEC is looking, and investors should not be confused because the SEC could step in to protect them.

Edited by enrique11

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How can XRP possibly be a security? Right now there are two former SEC officials defending Ripple. If they thought for a second that XRP was a security then why are they defending them in court? They know better than anyone else. If the SEC announced that XRP is a security it would be contradicting itself.
You say it yourself: former.
Take a lawyer. They can know there client in a criminal but will still defend him.
Whatever former sec officials say the current sec could rule differently.
I doubt they will but there's just no way to be 100% certain.

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