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Is XRP a security or not? Ripple CEO Brad Garlinghouse explains the daunting debate
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.
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BNB price has noted significant gains over the past few days, surging past the psychological resistance of $300. The native cryptocurrency of the Binance Exchange has surpassed Solana to regain its position as the fourth-largest cryptocurrency by market cap. The digital currency has been rallying lately with a 7-day profit of more than 15%. Additionally, BNB has clocked a phenomenal gain of 38% in the month to date.
Binance Coin Outlook
BNB price has been on a strong bull run for the past week, breaking out of its consolidation. Even so, the asset has experienced a correction in its uptrend over the past 24 hours but remains above the crucial level of $300. BNB’s total market cap has decreased by 4% over the past day to $48 billion, while the total volume of the asset traded over the same period dipped by about 15%.
Over the past year, Binance Coin has had to cope with Fear, Uncertainty, and Doubt (FUD) on the back of the regulatory troubles of its underlying exchange. Earlier, the BNB price touched a low of $223.50, a few days after its former CEO, Changpeng Zhao, pleaded guilty to money laundering charges. However, the cryptocurrency has managed to rebound 46% in value since then.
The recent price rally has been associated with various positive developments in the Binance ecosystem, including the Introduction of the Isolated Margin Auto-Transfer Mode. This feature enables…
Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.
SOL Outlook
Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.
The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.
This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…
Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.
Catalysts Behind SOL’s Rally
Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.
The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.
Cited figures provided by DeFi aggregator DeFiLlama…
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