Ripple XRP Coin or security?

hasyu

Contributor
When managing transactions, most crypto technologies are based on decentralisation. However, Ripple has a more traditional approach and it takes the idea of banking and in particular SWIFT transactions and provides a much needed upgrade by utilising blockchain technology.

Currently, when sending cross border fiat transactions money goes through multiple intermediaries. This can take weeks to complete. The process is not only limited to those banks ‘in the loop’ but is also riskier because when unaffiliated banks are working with each other, they have to issue IOU’s, which means a sending bank has less security should a receiving bank suddenly collapse.


Ripple addresses all these shortcomings by providing cheaper, instant transactions. These transactions are initiated using a single currency, XRP. Ripple and XRP are two parts of the same project. However, given XRP’s integral role and future use cases as a currency used by the general public, the price of XRP has rocketed in the last few months reaching nearly $0.30 at the time of writing this article.

Ripple was introduced in 2012, and there are also over 100 banks worldwide that are currently working with the Ripple team and trailing the system, including CIBC, ATB Financial, UBS, Reisebank, Santander, UniCredit, BMO Financial Group, Shanghai Huarui Bank, Abu Dhabi Bank, Standard Chartered, etc.

The technology will likely become the new defacto standard for financial institutions and banks wanting to transfer funds worldwide. In the future, it will become the currency of choice recommended by banking institutions and governments for general use. This makes Ripple well worth a sizable investment now. Cryptalks - Lets talk about Cryptocurrency..
 

CryptoTC

Crypto Fat Cat
A lot of early crypto investors DO NOT like XRP. Many write that it is centralized and controlled by only a few people. It’s hard to get the real truth because others write glowing reports of all the partnerships Ripple has for their xRapid and xCurrent products. Then comes the response that XRP isn’t used which is refuted ad nauseam by Ripple’s officials but can’t be confirmed.

I don’t know which side will end up being correct, but I do own XRP because I think it will be used and that traditional Wall Street investors will flock to it sometime in the near future. As they say, do your own research and this isn’t investment advice. Matter of fact, never take investment advice from a random internet poster, especially one who looks like a cat.
 

The CC Forums

Admin
Staff member
A lot of early crypto investors DO NOT like XRP. Many write that it is centralized and controlled by only a few people. It’s hard to get the real truth because others write glowing reports of all the partnerships Ripple has for their xRapid and xCurrent products. Then comes the response that XRP isn’t used which is refuted ad nauseam by Ripple’s officials but can’t be confirmed.

I don’t know which side will end up being correct, but I do own XRP because I think it will be used and that traditional Wall Street investors will flock to it sometime in the near future. As they say, do your own research and this isn’t investment advice. Matter of fact, never take investment advice from a random internet poster, especially one who looks like a cat.

This article summarizes what you’re pointing out:

Is XRP a Security? Major Ripple Debates Explained - CoinDesk
 

Old Man Crypto

Expert chainblocker
This article summarizes what you’re pointing out:

Is XRP a Security? Major Ripple Debates Explained - CoinDesk

Addressed more today. I never considered XRP to be a security. More attempts at confusing crypto investors by trying to sully Ripple’s coin and reputation. Hardcore crypto communities love to slam XRP as often as they can with claims it won’t be used, it’s centralized, banks are evil and so on. I see it as an investment, I’m not trying to change the world.

Anyway, addressed earlier today Ripple says its cryptocurrency XRP is not a security

Ripple says its cryptocurrency XRP is not a security
  • The blockchain start-up Ripple's cryptocurrency is not a security, one of its top executives told CNBC on Wednesday.
  • "We absolutely are not a security. We don't meet the standards for what a security is based on the history of court law," Ripple's chief market strategist, Cory Johnson, told CNBC in an interview.
  • The cryptocurrency's price has reacted positively to speculation that it might be added to Coinbase but is down more than 75 percent this year.
 

Old Man Crypto

Expert chainblocker
Don’t look now but that coin that isn’t a security and will never be used is up 30% in 2 days.

I expected big things from Ripple and XRP on the next 24 months. Big things. XRP will be used. Market cap will get to levels needed to move billions around quickly.

Long-term accumulate rating from the old man of crypto.
 

The CC Forums

Admin
Staff member
But the debate continues:

https://cointelegraph.com/news/form...siders-eth-xrp-likely-noncompliant-securities

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Excerpt:

Former Goldman Sachs partner and government regulator Gary Gensler believes that altcoins Ethereum (ETH) and Ripple (XRP) should likely be considered unregistered securities, The New York Times reported Sunday, April 22.

Gensler told the New York Times that he does not classify Bitcoin (BTC) as a security due to the fact that it was not issued through an Initial Coin Offering(ICO) and has a decentralized network of developers. On the other hand, Gensler told The New York Times that in regards to ETH and XRP that “there is a strong case for both of them — but particularly Ripple — that they are noncompliant securities.”

Gensler was also the head of the Commodity Futures Trading Commission(CFTC) from 2009 to 2014, a government organization that, along with the US Securities and Exchange Commission (SEC), is in the process of coming up with a crypto regulatory framework, including how to classify virtual currencies sold through ICOs. In response to their efforts towards regulating the crypto markets, Gensler said:

“2018 is going to be a very interesting time. Over 1,000 previously issued initial coin offerings, and over 100 exchanges that offer I.C.O.s [sic], are going to need to sort out how to come into compliance with U.S. securities law.”

In response to Gensler’s claims, the head of the Ethereum Foundation, Aya Miyaguchi, clarified in an email to the New York Times that the foundation “neither controls the supply of nor has the ability to issue Ether, and the quantity of Ether that the foundation holds (under 1 percent of all Ether) is already lower than that held by many other ecosystem participants.” Gensler did note the ETH may be able to avoid a securities classification since the coins are now mined, but the fact that the Ethereum Foundation sold the coins before 2014 could be a problem.
 

CryptoTC

Crypto Fat Cat
Coin, not a security.

No ownership stake in company, no voting rights, no dividend or profit sharing, no annual meetings, no input into management board.

It’s a coin. I suppose the SEC and US are going to make this security vs coin issue the hot topic of 2018 since taxes and ICO’s were their hot button issues in 2017.

:mad::mad::mad::mad::mad:
 

The CC Forums

Admin
Staff member
Coin, not a security.

No ownership stake in company, no voting rights, no dividend or profit sharing, no annual meetings, no input into management board.

It’s a coin. I suppose the SEC and US are going to make this security vs coin issue the hot topic of 2018 since taxes and ICO’s were their hot button issues in 2017.

:mad::mad::mad::mad::mad:

Wonder why all the recent focus on this terminology? Tax status maybe? Use as a transactional currency versus and investment asset? Thoughts?
 

Old Man Crypto

Expert chainblocker
As far as I’m concerned no cryptos are securities per IRS or SEC definitions. I own XRP. I don’t get to vote, I don’t get a part of the company, and if somehow Ripple “sold” to a different company, XRP holders wouldn’t get some of that money used to purchase the company and its technology.

Why is this even getting questioned? And why are other crypto investors making fun of this news on other social media? It’s not like their favorite coins or invested coins are securities or really any different from XRP. People love to hate on XRP. We’ll see who laughs last in 3 years I guess. FWIW I remain bullish.
 

CryptoTC

Crypto Fat Cat
Double posting this here from the Market News section. Anyone care to predict the effect on XRP price if any?

https://www.ccn.com/disgruntled-xrp-investor-hits-ripple-with-class-action-lawsuit/

Stupid lawsuit. Buy or sell a crypto, assume the risks. BS to sue somebody over investment losses. Like it’s Ripple’s fault the dude FOMO’d and then panic sold. And who sues over a $500 loss and then makes it a class action for everyone to jump on board? Smacks of a law firm looking for a big payday for themselves.
 

CryptoTC

Crypto Fat Cat
https://www.ccn.com/as-sec-debates-...initiative-seeks-to-distance-xrp-from-ripple/

Ripple trying to keep XRP from being classified as a security. Interesting read.

“The close association between Ripple and XRP has become a sticking point in recent months, as the US Securities and Exchange Commission (SEC) has stepped up its enforcement of securities violations within the nascent cryptocurrency industry.

According to reports, the SEC is internally debating whether certain cryptocurrencies should be classified as securities. Little from these discussions has been leaked, but regulators were said to have met on May 7 to discuss the matter.

One former regulator — Gary Gensler, who led the Commodity Futures Trading Commission (CFTC) under the Obama administration — said recently that he would classify XRP as a “noncompliant security” due to its distribution structure.

Notably, the company’s messaging on this point has shifted in recent weeks. In April, chief market strategist Cory Johnson said in an interview that XRP “We’re 100 percent clear, it’s not a security. We don’t meet the standards.”

However, earlier this month Ripple head of communications Tom Channick took a somewhat softer tone in a statement made to CCN.

“Whether or not XRP is a security is for the SEC to decide,” he said. “We continue to believe XRP should not be classified as a security.”
 

BitFit

Contributor
It’s all new. Hybrid structures between security, currency and commodity needs to be created. Then each coin will need to be categorized within the new scheme.

This is going to take a few years and a lot of discussion. The first go certainly won’t please everyone or necessarily get it right though.

I think a lot of people think that there was going to be a quick decision announced soon about all cryptos or at least a few cryptos like ripple and ethereum. I never know how much on web sites is rumor, true or deliberate misinformation to manipulate prices.
 

CryptoTC

Crypto Fat Cat
I think a lot of people think that there was going to be a quick decision announced soon about all cryptos or at least a few cryptos like ripple and ethereum. I never know how much on web sites is rumor, true or deliberate misinformation to manipulate prices.

This will be a 2-3 year process. Every crypto is a little different. Many are payment systems, those can be lumped together as currency but so much speculation goes on that governments believe they need to treat as investments for tax reasons.

Then you have utility tokens on Ethereum that may or may not actually ever be used. And people speculate on those too.

Interesting times indeed.
 
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