The agelong tale of XRP being security or not has been unearthed again after a recent publication made by Ripple, revealing why XRP should not be tagged a security token.
The publication titled “Summary of Ripple’s Wells Submission” caught the attention of Ethereum co-founder Vitalik Buterin, as Ripple in the pdf compared XRP to Bitcoin and Ether.
While Buterin expressed a negative perception about the publication, CZ reacted indifferently to XRP being security or not.
According to the pdf document, Ripple claims that XRP is a currency just like Bitcoin and Ether, but SEC’s theory failed to consider the economic reality that XRP which revealed that the cryptocurrency has a fully functional ecosystem with a distinct use case of remitting funds.
The document furthered that it is worth noting that XRP is a different entity from Ripple. However, the Silicon Valley-based blockchain company said SEC is being biased for branding XRP as an investment contract while uploading that Bitcoin and Ether are not.
Rippled added that the commission is in the process demolishing “U.S.-based, consumer-friendly innovation.”
Looks like the Ripple/XRP team is sinking to new levels of strangeness. They're claiming that their shitcoin should not be called a security for *public policy reasons*, namely because Bitcoin and Ethereum are "Chinese-controlled". 😂😂https://t.co/ts02JqrTrB pic.twitter.com/mKwEzGIetk
— vitalik.eth (@VitalikButerin) December 22, 2020
The part of the document that brewed response from Vitalik was when Ripple claimed if Bitcoin and Ether which are controlled by the Chinese are not securities, why would XRP be one. The Ethereum cofounder in response said Ripple “is sinking to new levels of strangeness.”
Labeling XRP a shitcoin, the Canadian-Russian programmer said Ripple/XRP team went past its limit to have said XRP should not be considered security becuase Bitcoin and Ethereum are “Chinese-controlled” coins.
Buterin also expressed dismay toward the part of the document which claims that the two leading cryptocurrencies by market cap are vulnerable to Chinese control since Bitcoin and Ethereum work under the simple majority rule.
Ripple, in the statement, furthered that the approach which the two cryptocurrencies work would only concede the entire innovation in the cryptocurrency industry to China, however, XRPL forestalls centralization in the blockchain industry.
CZ Binance Reacted Indifferently to Wheather XRP is a Security or Not
The matter which was developed on Twitter also got a response from Changpeng Zhao, the founder of colossal cryptocurrency exchange Binance, popularly known as CZ Binance.
— CZ Binance (@cz_binance) December 22, 2020
While CZ responded to Vitalik’s statement, the CEO of the cryptocurrency exchange did not state if XRP is a security on not.
CZ thinks it would be wrong to fight or work against each other in the blockchain industry as the industry needs collective effort to raise its adoption to the mantle.
The Chinese-Canadian business executive said it would be wrong to stay divided in the industry. He added that in the interest of growing the industry, it is best for everyone to stay decentralized.