“XRP Certainly Doesn’t Look like a Security to me” Says Binance CEO

XRP has had a sensation year. However, there is one thing holding it back, and that’s the judgement of it being a security or not!

Popular Crypto Analyst and Writer Joseph Young, had tweeted recently that Coinbase was not listing XRP even though major Cryptocurrency exchanges like Binance have could be the reason of Ripple being a security. Binance’s founder Changpeng Zhao better known as CZ replied to this reinstating XRP’s faith lying on its status of being a security.

Joseph Tweeted:

CZ Replies:

“The court case may take years. But if XRP is ruled as a security, it would seriously hurt a lot of US users, and to a certain extent, other users around the world too. It certainly doesn’t look like a security to me, but that’s just one person’s opinion.”

Is XRP a Security?

A security in financial terms is determined using the Howey Test’s four simple questions.

1) Is XRP an investment of money/assets? Ripple states that XRP is a digital asset created by Ripple which is sold. Hence it is not an investment vehicle.

2) Is there an expectation of profits from the investment? Ripple has never promised that investors that ‘hodl’ XRP will gain more value from it.

3) Is the investment of money/assets in a common enterprise? Ripple will have to answer with substantial evidence to the SEC as Ripple owns 80% of XRP. The major issue manipulation of XRP is possible with Ripple having control of most of the supply. Thus being a point of debate.

4) Any profit comes from the efforts of a promoter or third party
XRP’s price is determined by market factors, which are the people buying and selling and so Ripple has no problem with this point.

Even Crypto heavyweights have brought into light XRP being a security. One such person is the self-proclaimed Satoshi Nakamoto, Craig Wright.

He Tweets:

“XRP is going to be “found” to be both a security and in violation of Section 5 of the Securities Act of 1933. The Act mandates the registration of securities with the SEC. These must be offered exclusively on a registered exchange.”

XRP at the time of writing is trading the green at $0.306294 with a market capitalization of $12,535,685,746. So far so good with a ranking of 2nd out beating Ethereum ever since the bears took over the Crypto market.

Also Read:

Discuss this news on our Telegram Community. Subscribe to us on Google news and do follow us on Twitter @Blockmanity

Did you like the news you just read? Please leave a feedback to help us serve you better

Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.