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N.Weaver (berkeley and icsi) & N.Roubini (stern school of business) say XRP is a security and Ripple is committing fraud

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To me, the best explanatory analogy for XRP is that of diamonds. One can buy diamonds as an investment and they may indeed go up in value. A single company, DeBeers, owns something on the order of 60% of the world diamond supply. But I don't think anyone would argue that a DeBeers mined diamond should be considered a security. Why is this? Quite simply because a diamond can be re-purposed and have value and use outside of the activities of the selling company. DeBeers could cease to exist and the diamond would still have value. To me, this is what was meant when the SEC noted that a crypto can begin as a security and become a non-security. If it can have value and use irrespective of that of the creating company then I believe it should not be deemed a security.  

That being said, this is what I hope will occur. But I am not under the illusion, as some of you are, that the government always follows logic and reason in these matters. 

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This has all been explained many times "By Ripple the Company", How they use the 55 Billion of XRP that is Escrowed and monthly released of 1 Billion to Strenghten the XRP ECO System. What's not have been sold goes back into Escrow!

Both Links Escrow and Quarterly Reports explains how everything is done. 

I Still don't understand that people are still spreading FUD, only to buy cheaper no doubt :wacko3: !!!

https://ripple.com/insights/ripple-to-place-55-billion-xrp-in-escrow-to-ensure-certainty-into-total-xrp-supply/

&

https://ripple.com/insights/ripple-to-place-55-billion-xrp-in-escrow-to-ensure-certainty-into-total-xrp-supply/

/R-2-D-2

:beach:

 

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This is strange considering that a federal court has already ruled in favor of the U. S. Commodity Futures Trading Commission (CFTC) that virtual currencies are commodities under the CFTC's purview.  This ruling came pursuant to a case regarding My Big Coin.  It is my understanding that the CFTC is a lateral administrative agency to the SEC.  Perhaps these two acronyms need to fight it out a bit more.

CFTC Director of Enforcement Comments

James McDonald, CFTC Director of Enforcement, commenting on the ruling, stated:  “This is an important ruling that confirms the authority of the CFTC to investigate and combat fraud in the virtual currency markets.  This ruling, like the one in McDonnell from Judge Weinstein in the Eastern District of New York, recognizes the broad definition of commodity under the CEA, and also that the CFTC has the power to prosecute fraud with respect to commodities including virtual currencies.  We will continue to police these markets in close coordination with our sister agencies.” 

https://www.cftc.gov/PressRoom/PressReleases/7820-18?fbclid=IwAR2UYEEn5aCFQvY-Oy55uzw6ozzi2lLWxejJJukpgcIXTxt2yZElJDA29sc

Edited by Sorrovv

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8 hours ago, Mcripple said:

XRP is no different than me going to Wal-Mart and buying 5,000 packs of bacon. 

I still have no say in how Oscar Meyer runs its company, they owe me nothing whatsoever, I can still use the bacon if Oscar Meyer goes under, and so on.

Once I buy XRP I do not earn dividends from Ripple. They have no idea who their XRP holders are. 

 

This raises a good question: What's better, XRP or bacon?

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Doesn't his argument fall apart with this claim:

"#3: "Is the investment of money in a common enterprise?"

Yes. The "Ripple network".

Is the purchase of XRP an investment into the Ripple network?

I thought the answer to this was a clear no.  Ripple and XRP are two different and totally independent entities.

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1 hour ago, Crypto31 said:

Doesn't his argument fall apart with this claim:

"#3: "Is the investment of money in a common enterprise?"

Yes. The "Ripple network".

Is the purchase of XRP an investment into the Ripple network?

I thought the answer to this was a clear no.  Ripple and XRP are two different and totally independent entities.

He doesn’t know it or doesn’t want to know .

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1 hour ago, Artoflife said:

Nick Weaver and Nouriel Roubini are a bunch of cooks.

Nourishing Ravioli is a cook?

?

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16 minutes ago, icebreath said:
2 hours ago, Artoflife said:

Nick Weaver and Nouriel Roubini are a bunch of cooks.

Nourishing Ravioli is a cook?

Weaver & Roubini should read a book?

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