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Is XRP a security or not? Ripple CEO Brad Garlinghouse explains the daunting debate

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The debate on whether Ripple is a security or not has been on for many months now. What’s even worse is that the Security Exchange Commission (SEC) hasn’t given its stance or a say on whether Ripple is a security or not. However, a recent talk, which involved Ripple’s chief executive officer Brad Garlinghouse and Michael Arrington – of Arrington Capital, was held at the Techcrunch’s San Francisco Disrupt Conference.

The discussion was anchored by Mike Butcher, the Editor of Techcrunch. The discussion was based on the Security Exchange Commission and a few other aspects.

During the course of the discussion, Butcher asked Garlinghouse what the fate of Ripple will be if it was declared a security. The CEO replied:

Security is something that represents ownership in a company that gives you rights to dividends, give you rights to governance, things like that. Ripple and XRP are two separate entities. When you buy XRP, that doesn’t give you any rights to the profits or ownership of Ripple the company.”

Garlinghouse said that there are lots of FinTech companies including banks that have adopted Ripple into their system and are even great investors. Additionally, Garlinghouse made it clear that there are no common grounds between Ripple and SEC; therefore, the false info concerning the debate or argument is a little bit weighty.

Garlinghouse went on to say that if Ripple doesn’t operate, XRP will keep functioning (a thing that the Ripple CEO has been saying again and again). It is important to add that the XRP token was handed over to the Ripple Company by its creator as a utility token. Garlinghouse further said this to Butcher:

So if XRP is a security, it’s a security for what?”

He also said about Coinbase; how the exchange platform affects the price of XRP and if they will ever list XRP. The CEO of Ripple said:

So does that mean XRP is the security of Coinbase or Ripple?” Garlinghouse ended by saying Ripple is not a security and that XRP is different from Ripple.

What is in for Ripple and its ‘hodlers’ if it is declared a security

Nonetheless, there have been many speculations that if Ripple becomes a security, its value will be on the downside and would repeat Garlinghouse’s statements that Ripple is different from XRP. If Ripple is declared a security by SEC, they (Ripple) won’t be that unhappy.

There are reasons behind that. First, we shouldn’t forget that last year, the WallStreet pleaded for a Ripple IPO. So if Ripple is declared a security, the WallStreet would be happy about that, due to the fact that Ripple be will feature on local exchange platforms in NewYork, Singapore, etc., and SEC will have a complete hold of Ripple.

And that will be to the advantage of Ripple because local trading platforms will want to bank on Ripple after being declared a security, and that would bring a surge to its current market capitalization. There is also a high possibility that the market capitalization of Ripple will attain a height twenty times more than it has now.

Subsequently, investors should not discard or sell their tokens, when Ripple gets declared a security because, as said earlier, Ripple will still attract more local exchanges and hence, the market cap would increase, thus, making investors to benefit as been ‘hodlers’ even though they may be charged for cashing out.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Pxhere.com

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Can Sharding Fix the Limitations of Blockchain or is the Network Doomed?

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Performance and scalability issues have bottlenecked the future development and real-life application of popular mainchains, such as Bitcoin and Ethereum. Many methods have been employed to solve this problem, but all of them have their own pros and cons.

The Impossible Trinity – safety, decentralization and scalability, coined by the blockchain world, bars the way to the future and the industry has fought hard to figure out an optimized solution. Sharding, proposed by Ethereum, has been viewed as one such candidate.

What is sharding?

Sharding technology splits a network into smaller partitions called shards, which contain an independent state and transaction history. The idea behind this is to divide a huge amount of workload into smaller pieces to make life easier for every participating node.

If sharding were to be adopted, each node will only need to keep a part of the network’s information, instead of downloading the whole ledger, which can lead to a large data file. Subsets of nodes grouped into one shard will only process transactions specific to that shard. By doing this, the network will be able to process many transactions in parallel, and the performance will continue to increase with more nodes joining in, thus making the network highly scalable.

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Altcoins

Encrypgen’s New HODLING Incentive Program May Send DNA Token Soaring

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Cryptocurrency traders have enjoyed a Bitcoin moon shot during the past few months.  Those gains have created a much more enjoyable environment for crypto bulls.  Whether it’s a temporary or permanent increase remains to be seen but hitting the 10,000 level has put everyone in a better mood.  Unfortunately, altcoins have not had experienced the same type of gains and are lagging significantly behind Bitcoin.

I’ve written articles in the past year that there is at least a decent chance that many altcoins won’t survive the current environment.  The ones that do will do so because they created a platform that has real world usage.  After spending countless hours researching many of the existing altcoins, I’ve yet to see a company that is more promising than Encrypgen (DNA).

Encrypgen Background Information

Encrypgen is a genomic blockchain network that provides customers and partners with best-in-class, next generation, blockchain security for protecting, sharing and re-marketing genomic data. This creates a fair marketplace for a person’s DNA that can be stored privately and sold (if a person wishes to do that). A person’s DNA can also be shared privately and securely with their physician for their personalized care.

Typically, people can send their DNA off to a lab to find out who they are and where they come from. As fun as that might sound, there is a significant security problem…

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Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

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