- The primary question hanging over XRP is whether or not it is a security
- Revenue from selling XRP is used to increase the value of a corporate entity, Ripple Labs
- XRP was created as an anti-sybil mechanism for the Ripple protocol with the intention to continuously sell XRP to fund operations
- “For every penny the price of XRP goes up, the notional value of Ripple’s XRP goes up by six hundred million dollars”
- “After all, the reason we’re doing this is to increase demand for XRP to increase the value we can extract from our stash of XRP.”
In the slow dance between the SEC and cryptocurrencies, nothing has garnered more interest – or more confusion – than a single question: “Is this token a security?” Due to recent SEC enforcement and comments, the conditions required to answer that question are becoming a bit clearer. Yet, murky origins and numerous public comments ensure that it is still an opaque question in the case of Ripple and XRP.
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