Originally published at: https://toshitimes.com/xrp-is-not-a-security-claims-ripple-chief-strategist/
The XRP coin, which is a cryptocurrency developed by the San Francisco-based public Ripple Consensus Ledger is currently the third-largest digital currency in the market, with a market cap of over $22bln. It is also a foundation on which the main products of Ripple, such as xRapid, xCurrent or xVia are built. Recently, the allegations…
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Considering the fact that Ripple has already been body slammed once, by FinCEN, their conclusory stand on their cryptocurrency not being a security is either brave or foolhardy.
There seems to be an awkward distinction being made now between tokens sold through an ICO, and those purely created on the blockchain itself, like the original Bitcoin. The current stance of the SEC is that ICO equals secuirty.
So what about Ethereum? Ethereum was launched with the equivalent of an ICO. And yet it is not clear the SEC considers the Ethereum token itself a security today. Is it because they have in essence been grandfathered in? Which still doesn’t answer the question of all the cryptocurrencies built on Ethereum offered as new ICOs today. Why would their tokens be more or less a security than Ethereum itself?
In the meantime, 60% of the existing Ripple tokens remain undistributed. If they are sold off by Ripple at some point in the future, would that not be a SCO (subsequent coin offering)? We think they may be determined to set a legal precedent one way or another.