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ECB Official Decries Bitcoin as ‘Evil Spawn’ of Financial Crisis, Ripple Consolidates Lawsuits

November 16, 2018 |

ECB Official Decries Bitcoin as 'Evil Spawn' of Financial Crisis, Ripple Consolidates Lawsuits

In recent regulatory news, an executive board member of the European Central Bank (ECB) has given a dismissive appraisal of bitcoin and rejected the prospect of central banks issuing state-backed digital currencies in the foreseeable future. In other news, Ripple Labs has moved to consolidate three lawsuits into a single federal suit, while the police have arrested eight individuals in Tokyo who are suspected of involvement in a $ 68.4 million cryptocurrency pyramid scheme.

Also Read: French Financial Regulator Estimates ICOs Have Raised $ 21.9B Globally

ECB Board Member Dismisses Prospect of
Central Bank-Issued Virtual Currencies

ECB Official Decries Bitcoin as 'Evil Spawn' of Financial Crisis, Ripple Consolidates LawsuitsBenoit Coeure, an executive board member of the ECB, has issued a critical appraisal of bitcoin and cryptocurrency in general. He described them as “the evil spawn of the financial crisis” in a recent speech at the Bank for International Settlements in Basel.

“Bitcoin was an extremely clever idea,” Coeure stated. “Sadly, not every clever idea is a good idea.”

Coeure was also dismissive of the prospect of central bank-issued virtual currencies becoming a reality within the next 10 years. “There is broad agreement that a central bank digital currency, in whatever form, is unlikely to be issued within the next decade,” he said.

Ripple to Take Lawsuits to Federal Court

ECB Official Decries Bitcoin as 'Evil Spawn' of Financial Crisis, Ripple Consolidates LawsuitsRipple Labs has moved to consolidate three ongoing class-action lawsuits the company faces into a single federal suit. Various lawyers have described the move as “slick” and exhibiting “tactical brilliance.”

The suits were filed by David Oconer, Vladi Zakinov and Avner Greenwald, who are collectively seeking more than $ 167 million in damages on behalf of “thousands” of investors. Ripple is seeking for the case to be heard at the U.S. District Court for the Northern District of California. The combined number of plaintiffs involved in all of the cases exceeds 100.

Tokyo Police Arrest 8 Over
$ 68.4M Pyramid Scheme

ECB Official Decries Bitcoin as 'Evil Spawn' of Financial Crisis, Ripple Consolidates LawsuitsPolice in Tokyo have arrested eight men for their alleged involvement in a pyramid scheme that duped roughly 6,000 investors out of an estimated 7.8 billion yen ($ 68.4 million) worth of cryptocurrency. The individuals are suspected of violating Japan’s Financial Instruments and Exchange Act by failing to register their business operations with the relevant authorities.

Investors were recruited at events such as seminars, where they were promised monthly returns of between 3 percent and 20 percent. Six of the eight individuals who were arrested have reportedly confessed to the allegations made against them.

Last month, a group of 73 individuals who fell victim to the scheme filed a lawsuit with the Tokyo District Court. They are seeking 370 million yen ($ 3.276 million) in damages.

Do you think Ripple will be successful in consolidating the three lawsuits it faces into a single federal suit? Share your thoughts in the comments section below.


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At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.

The post ECB Official Decries Bitcoin as ‘Evil Spawn’ of Financial Crisis, Ripple Consolidates Lawsuits appeared first on Bitcoin News.

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Khashoggi Death May Have Ripple Effects in Yemen War

November 1, 2018 |

At an apparent turning point in one of its hardest foreign policy challenges, the Trump administration is demanding a ceasefire and the launch of UN-led political talks to end the Saudi-Iran proxy war in Yemen. Defense Secretary Jim Mattis called for a halt to hostilities within 30 days. The renewed…
Newser

Arrington XRP Capital Owns More BTC Than Ripple

July 29, 2018 |

Arrington XRP Capital Owns More Bitcoin Core Than Ripple

During a recent interview with CNBC Crypto Trader’s Ran Neu-Ner, Michael Arrington of Arrington XRP Capital revealed that his fund owns more BTC than XRP, and discussed the company’s decision to denominate in XRP.

Also Read: Huobi Informs Users on Decision to Launch P2P Trading in India

Arrington XRP Capital’s Exposure to XRP is “3 – 4%”

Arrington XRP Capital Owns More Bitcoin Core Than RippleIn an interview with CNBC Crypto Trader during their coverage of Korea Blockchain Week, Mr. Arrington discussed some of the cryptocurrencies that his fund is invested in. Despite denominating the fund in XRP, Mr. Arrington indicated that the percentage of the fund currently invested in XRP is “3 – 4 percent,” adding “we hold a few million dollars worth of XRP.”

When asked of the company’s ‘cash position’, Mr. Arrington stated: “We hold a lot of [BTC] – we hold more [BTC] than anything else, we hold a lot of Ether, we hold a lot of U.S. dollars, occasionally we hold Tether overnight,” adding “I don’t know which one[s] are the ‘cash positions’ – they’re all either currencies or have different utilities, so I don’t know how to answer that question.”

Arrington Discusses Denomination in XRP

Arrington XRP Capital Owns More BTC Than RippleWhen asked of the motivations behind launching a fund denominated in XRP, Mr. Arrington stated: “XRP […] is a really, really good way to move money. So we denominate our fund in XRP because it’s a fantastic way to move money cross-border, very quickly, at almost zero cost.”

Addressing the stigma associated with Ripple by many in the cryptocurrency community, Mr. Arrington stated: “There is a lot of tribalism in cryptocurrency, and a lot of bitcoin maximalists, etc., and the one thing they all agree on, is they all hate XRP because its centralized, they think its corporate managed, etc.,” adding, “none of that is really true.”

Mr. Arrington concluded: “while the other more decentralized cryptocurrencies […] find their way toward becoming more efficient, in the meantime, XRP is fantastic – and so from a hedge fund point of view, it’s great to denominate ourselves in XRP.”

Arrington Predicts $ 25,000 BTC by 2019

Arrington XRP Capital Owns More BTC Than RippleRegarding whether denominating the fund in XRP makes the its vulnerable to fluctuations in the price of Ripple’s token, Mr. Arrington stated: “The key thing is the underlying asset, […] only a small percentage of our fund holds XRP, we’re vastly diversified. Those underlying assets, whatever their value is, that’s what really matters at the end of the day.”

When asked of his outlook for the bitcoin and cryptocurrency markets, Mr. Arrington stated: “My entire life has been cryptocurrency – we’re all bullish on it,” adding “I’m always an optimist, […] I think that we’re going to hit $ 25,000 USD this year easy.”

Are you surprised that Arrington XRP Capital holds more BTC than XRP? Share your response in the comments section below!


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The post Arrington XRP Capital Owns More BTC Than Ripple appeared first on Bitcoin News.

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Ripple, CEO Face Another Securities Fraud Lawsuit

July 5, 2018 |

Ripple, CEO Face Another Securities Fraud Lawsuit

A third lawsuit, alleging securities fraud, was filed last week against Ripple Labs Inc, XRPII LLC, and its CEO Bradley Glaringhouse. In 28 pages, the class action suit attempts to make the case XRP is a security: issued, maintained, and supported by Ripple in clear violation of US regulatory laws. Ripple has worked extremely hard to distance itself from its cryptocurrency, XRP, in hopes of avoiding just this scenario.   

Also read: Troll Slayer: Derek Magill Defends Peer-to-Peer Electronic Cash Against Defamation

Ripple Labs Faces Third Securities Fraud Lawsuit

Managing partner of Robbins Arroyo LLP, Brian J. Robbins, filed a class action lawsuit against Ripple Labs Inc, XRPII LLC, and CEO Bradley Glaringhouse on behalf of San Diego college senior David Oconer. Signed by fax late June of this year in the San Mateo, California Superior Court, its more than two dozen pages set about making the case Ripple is in clear violation of the Howey Test.

Mr. Oconer, through his legal team, stresses how Ripple fought to manipulate the XRP price, including placing tens of millions XRP tokens into a kind of escrow, creating an arbitrary scarcity. It was also a way to signal to worried longer term investors the company would not dump the lot all at once. Indeed, XRP mooned to many hundreds of percent, the suit alleges, as a result of such moves.

Ripple, CEO Face Another Securities Fraud Lawsuit

It’s the third such lawsuit filed against the company since early May of this year. A common theme between each suit is the claim XRP is a security as defined under US regulatory statute – which insist Ripple Labs is the token’s puppet master indistinguishable from XRP itself. The Oconer version leans heavy on making a case for a Howey Test violation. Ripple isn’t taking any of the suits lightly, hiring two former US Securities and Exchange Commission heavies, Andrew Ceresney and Mary Jo White, as lead counsel.

Ripple, CEO Face Another Securities Fraud Lawsuit

XRP has long been held in a controversial light due in part to its origin story. While leading cryptos were to be mined on chain, ripples appeared ex nihilo with more than 60 percent still held by its parent company. If deemed a security, the company would be most likely ordered to cease all trading, and it’s not unusual to presume holders would be given the chance at refunds. Violations of securities law, what’s more, can also be prosecuted criminally, though those in the know believe it will not get to that stage.

Will these lawsuits hurt Ripple? Let us know in the comments section below. 


Images via the Pixabay, Twitter.


Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi Pulse, another original and free service from Bitcoin.com.

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Paul Krugman Trolls Ripple, Accidentally Making a Case for Bitcoin Cash

July 4, 2018 |

Paul Krugman Trolls Ripple, Accidentally Making a Case for Bitcoin Cash

“If a digital currency isn’t actually used for any transactions, is it, you know, actually a currency?” tweeted Nobel laureate economist with the ears of American progressive politicians, Paul Krugman. He was prompted by a colleague’s recent article regarding a push by Ripple’s XRP to urge users to do more than just speculate. Mr. Krugman, it turns out, backed into one of the main arguments for bitcoin cash (BCH).

Also read: 27% of England’s Male Millennials Say Bitcoin Better Investment Than Property

Paul Krugman Trolls Ripple, BTC

Useless. Evil. Antisocial. Worthless. Impractical. Bubble. Fraud. Those are the kinder adjectives the preeminent US court US economist, with exclusive access to freer world leaders, has used to describe the cryptocurrency phenomenon. He’s also maniacally cheered bitcoin core (BTC) price haircuts, tacitly approving investors being wiped out and worse. More recently, he took to Twitter yet again to troll XRP and BTC enthusiasts, chiding, “If a digital currency isn’t actually used for any transactions, is it, you know, actually a currency?”

Mr. Krugman, interestingly enough, backed into a main argument for bitcoin cash (BCH), at least as proponents see things. He made no mention of the fourth largest decentralized currency by market capitalization, but the bitcoin cash gang maintains that for a cryptocurrency to be a currency in any meaningful sense it must be used. Otherwise, it’s just an exercise in greater fool game theory.

Paul Krugman Trolls Ripple, Accidentally Making a Case for Bitcoin Cash

Mr. Krugman’s snide, smug take has to do with Nathaniel Popper’s, “Here’s Some Cryptocurrency. Now Please Use It,” published in The New York Times this week. Mr. Popper examines Ripple’s recent press barrage, shoving its XRP in front of mainstream audiences from Los Angeles (Ellen DeGeneres) to New York (Stephen Colbert), which have hosted giveaways totaling more than $ 30 million … and just for those two shows, mind you.

“Now comes the hard part,” Mr. Popper explained, “persuading people to use XRP for something other than speculative trading. It is an issue facing most of the still-young cryptocurrency industry. Digital tokens like bitcoin and its many imitators (like XRP) were designed to make electronic transactions of all sorts easier. But today almost no transactions are happening, other than on virtual currency exchanges where people bet on their price.”

Cash Flush, Business Light

It’s an all-out push by Ripple, including getting perpetually inebriated rapper Snoop Dogg to host after parties. They’ve even forked over $ 300 million to grease the wheels of getting businesses to use XRP. They’re looking to lure developers. This desperation has its own term, “cash flush, business light.”

Store of value arguments have held the day, and so most enthusiasts do hold their positions rather than use, at least as it concerns XRP and the world’s most popular cryptocurrency, BTC. Mr. Popper notes how many “people who bought the digital tokens created by these projects did so in the belief they will one day be useful for real transactions of some sort. If the projects want to keep those investors from selling, the projects have to convince them the tokens will have some long-term value.”

Paul Krugman Trolls Ripple, Accidentally Making a Case for Bitcoin Cash

For XRP the campaign to get users to see it as a functional currency might be less than a philosophical harkening back to crypto’s rebellious roots. Projects like it are in grave danger of being legally relegated to securities, meaning “they will be subject to restrictions on trading and movement, making it even less likely that people will use the tokens for their intended purposes,” Mr. Popper insists, something Ripple executives are keen to avoid at all cost. They’ve gone to great pains to separate Ripple the company from the currency XRP, with an obvious irony, “Its efforts to promote XRP could demonstrate how reliant XRP is on Ripple.”

In any event, the crypto community has at least one example of a currency gaining adoption and medium of exchange use case. Seemingly daily, an innovation or re-adoption of a previous concept long abandoned by bitcoin core as it veered off into settlement layer/digital gold land is implemented, resurrected, as bitcoin cash is, you know, actually a currency.

Does Paul Krugman have a point? Let us know in the comments section below. 


Images via the Pixabay, Twitter.


Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi Pulse, another original and free service from Bitcoin.com.

The post Paul Krugman Trolls Ripple, Accidentally Making a Case for Bitcoin Cash appeared first on Bitcoin News.

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Bitcoin in Brief: Halting 51% Attacks and Where Now for Ripple?

June 15, 2018 |

Bitcoin in Brief: An End to 51% Attacks and Where Now for Ripple?

The last 24 hours have been action-packed for the cryptocurrency markets, with digital assets rising off the SEC’s pronouncement that ethereum is not a security. But while most hodlers were toasting the agency’s announcement, one top five coin that failed to respond favorably was ripple. In today’s Bitcoin in Brief we consider where the SEC’s statement leaves XRP and examine a proposed solution to 51% attacks.

Also read: Get Them While You Can Gamers, Graphics Cards Prices Have Crashed

While Cryptos Leap, Ripple Stagnates

We live in strange times when an agency tasked with stamping out market manipulation is responsible for causing the biggest green candle in weeks. Two years ago, many cryptocurrency traders would have struggled to tell you what the SEC did, let alone named its chairman Jay Clayton. But in this new era of blanket regulation, not only is the crypto community familiar with the inner workings of the US Securities and Exchange Commission, but they’re dependant on it to boost their flagging portfolios.

Bitcoin in Brief: A Solution to 51% Attacks and Where Now for Ripple?

Around the same time an SEC executive was opining that ethereum does not constitute a security, EOS finally reached the 15% voting threshold required to launch the network. This dual infusion of bullish news saw most major cryptos leap in price, with ETH and EOS the biggest beneficiaries. But while crypto hodlers partied, one altcoin community was left to stew in a corner. Ripple has seen a slender increase of just 0.5% in the past 24 hours, as the SEC’s definition of securities has left its status unclear.

Bitcoin in Brief: A Solution to 51% Attacks and Where Now for Ripple?
XRP was one of the few coins that failed to respond positively to the SEC’s news

The full speech from the SEC’s head of the Division of Corporate Finance William Hinman includes a series of questions for identifying whether an asset is likely to be deemed a security. These include:

  • Is there a person or group that has sponsored or promoted the creation and sale of the digital asset, the efforts of whom play a significant role in the development and maintenance of the asset and its potential increase in value?
  • Has this person or group retained a stake or other interest in the digital asset such that it would be motivated to expend efforts to cause an increase in value in the digital asset?
  • Has the promoter raised an amount of funds in excess of what may be needed to establish a functional network, and, if so, has it indicated how those funds may be used to support the value of the tokens or to increase the value of the enterprise?
  • Does the promoter continue to expend funds from proceeds or operations to enhance the functionality and/or value of the system within which the tokens operate?
  • Do persons or entities other than the promoter exercise governance rights or meaningful influence?

It’s unlikely that the SEC is going to start making a habit of naming which coins do and don’t constitute a security. But it’s also unlikely, going by those questions, that ripple could be interpreted as as utility token.

Bitcoin in Brief: A Solution to 51% Attacks and Where Now for Ripple?

An End to 51% Attacks?

Another altcoin that had a very good Thursday was Zencash. It’s bounced back from a recent 51% attack, jumping 17% off the news that Grayscale, led by Barry Silbert, will be making the coin its ninth investment. The group’s portfolios start at $ 400 million, rising to over $ 1.2 billion for bitcoin core. The Grayscale news helped the price of ZEN soar, but the more important story was the new whitepaper the team released on Thursday, which has implications for all Proof of Work coins.

Bitcoin in Brief: A Solution to 51% Attacks and Where Now for Ripple?

In the document, Zencash propose changing Satoshi Consensus, also known as the longest chain rule, to a method that makes it “both technically infeasible and economically disastrous to attempt double spending”. ZEN aims to achieve this by introducing a penalty “in the form of a block acceptance delay in the amount of time the block has been hidden from the public network”. The team now hopes that other PoW coins will adopt this proposal with a view to mitigating further 51% attacks.

Bestmixer on the Difficulties of Maintaining Anonymity

Bitcoin in Brief: A Solution to 51% Attacks and Where Now for Ripple?
Bextmixer has responded to concerns about its mixing technology

You won’t find KYC on Coinmarketcap, but in the SEC-led compliance era, you’ll find that abbreviation at most on and off-ramps to the world of cryptocurrency. A couple of weeks ago, we reported on Bestmixer, a new bitcoin tumbler trying to restore privacy to cryptocurrency users who desire it. The team behind the project has since contacted news.Bitcoin.com to reassure users that Bitmixer’s coin mixing code is not used to track them.

They explain: “This functionality is necessary for any mixer…without such functionality any mixer can not be considered anonymous…We have to mark transactions because without marking transactions, we would not understand whether it is your money or not when you repeat mixing; it would be technically impossible. Thus, we protect our clients from return of their old coins to them during subsequent mixing. The marking excludes our clients’ deposit from the common pool, so that they can not use it if the BestMixer code is applied.”

They add: “The BestMixer code is necessary to protect a client from getting his old coins back under any circumstances – this is one of the key points on which the system is based. As for the use of the [premium service] Gamma pool there is no need to use the BestMixer code in this pool at all, since it is a separate pool, not tied in any way to either Alpha or Beta pool. How are the funds formed in this pool? It’s either investors’ money or our own reserves. And this pool is really going to be a big problem for startups like Chainalysis.”

Bitcoin in Brief: A Solution to 51% Attacks and Where Now for Ripple?

Today Was a Good Day

All told, this week has ended a lot better than it began for cryptocurrency holders, unless you’re one of the five Floridians indicted for an $ 800,000 bitcoin home invasion robbery. Elsewhere, with decentralized cryptocurrencies such as BTC and ETH reveling in their non-security status, Xapo relishing its New York Bitlicense, and Zencash hopeful of a breakthrough in defending 51% attacks, there’s a lot of reasons to be cheerful right now. Don’t get too comfortable though: tomorrow’s a new day, with the potential to bring joy or jet lag to the restless cryptocurrency markets. As always, you’ll find the best and worst of it here in Bitcoin in Brief.

Do you think ripple is a security token and what are your thoughts on Zen’s proposal for stopping 51% attacks? Let us know in the comments section below.


Images courtesy of Shutterstock, Zencash and Twitter.


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The post Bitcoin in Brief: Halting 51% Attacks and Where Now for Ripple? appeared first on Bitcoin News.

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Ripple CEO: Bitcoin Controlled by Chinese, Absurd to Think it Could be Primary World Currency

June 13, 2018 |

Brad Garlinghouse, Ripple CEO, answered candidly during an interview about crypto’s prospects for the future. Among other criticisms, he stressed blockchain technology is mostly hype, and that bitcoin core (BTC) is controlled by Chinese miners and has no hope of being a world currency.

Also read: Crypto and Virtual Reality Meet in Ken Liu’s Science Fiction

Ripple CEO Bashes Bitcoin

Attendees of the 2018 Stifel Cross Sector Insight Conference in Boston yesterday were probably expecting to learn more about Ripple, the world’s third most popular cryptocurrency by market capitalization. After all, none other than company CEO Brad Garlinghouse was guest of honor for an interview with Stifel Tech analyst Lee Simpson. And while Ripple certainly was the hot topic, Mr. Garlinghouse also took the opportunity to bash its main decentralized competitor, bitcoin core (BTC).

“A number of prominent people,” Mr. Garlinghouse explained, “even Steve Wozniak, has said that he sees a world where Bitcoin is the primary currency. I think that’s absurd. I don’t think that any major economy will allow that to happen. By the way, it doesn’t make sense.” Indeed Woz has said as much, as have Twitter and Square CEO Jack Dorsey, who predicted it would happen within the decade.

Ripple CEO: Bitcoin Controlled by Chinese, Absurd to Think it Could be Primary World Currency

Brad Garlinghouse, 47, has held his present position since 2015. His professional background is almost all technology related. Stints with Yahoo!, AOL, working in the investment arena with the likes of Silver Lake Partners, @Ventures, @Home Network, SBC Communications, all round out his experience prior to Ripple.

His views about BTC and its eventual influence have found him very quotable of late, especially this month. He’s spent a great deal of time attempting to separate the coin aspect of Ripple (XRP) from the company itself, and this has lead to some interesting juxtapositioning in his method of argument.

BTC Blockchain Not Disruptive, Chinese in Control

During the Boston interview, he even took on the sacred cow of the corporate world, BTC’s distributed ledger technology. “There’s a lot of blockchain craziness, but there are three indicators of market winners. Blockchain will not disrupt banks […] it will play an important role in the way our system works. It’s a short-sighted view […]. Bitcoin is not the panacea we thought it would be.”

Mr. Garlinghouse then compared XRP to BTC. “This is how liquidity will be managed in the future. Bitcoin today takes 45 minutes to settle a transaction. Banks will use what is efficient and cheaper. And if you deliver a better product at a better price […] they will use it.” Ripple CEO: Bitcoin Controlled by Chinese, Absurd to Think it Could be Primary World Currency

An under-reported story, Ripple’s CEO insisted, is how BTC is “owned by China.” He noted, “The smartest thing you’ve done is not have ‘bit’ or ‘coin’ in your name. I’ll tell you another story that is underreported, but worth paying attention to. Bitcoin is really controlled by China. There are four miners in China that control over 50% of Bitcoin. How do we know that China won’t intervene? How many countries want to use a Chinese-controlled currency? It’s just not going to happen.”

Lastly, he assured, “I own bitcoin. Many people consider it as digital gold. I acknowledge, I’m long [on] crypto. I’d advise folks to only invest in crypto only what you’re willing to lose. It’s early to tell how it is going to play out. I think it’s a pretty good investing strategy. I don’t think about the digital asset market. I think about the customer experience. There are millions unbanked or underbanked. When I think about the transformation, it is fundamentally changing the way millions participate in banking. We can fundamentally change the way this works, to bring an entire population up a step in the system.”

Do you think Ripple’s CEO is correct? Let us know in the comments. 


Images via the Pixabay.


Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com.

The post Ripple CEO: Bitcoin Controlled by Chinese, Absurd to Think it Could be Primary World Currency appeared first on Bitcoin News.

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Ripple Wants People to Stop Calling Its Coin ‘Ripple’

May 31, 2018 |

Ripple Wants People to Stop Calling Its Coin ‘Ripple’

What’s the difference between Ripple the company and ripple (XRP) the cryptocurrency? Many people would assert “Not a lot” given that the former owns most of the latter and its founders were responsible for creating ripple in the first place. Ripple the company has other ideas though, and is on a mission to separate the two ripples – big and small – once and for all.

Also read: May Breaks 2018’s Down-Trend in Monthly Total Raised by ICOs

The Disambiguation of Ripple and XRP

Ripple Wants People to Stop Calling Its Coin ‘Ripple’For several months, Ripple has been on a mission to dispel the notion that it is responsible for the XRP currency it issues. Just as Prince once changed himself into a symbol, the project would like to turn its currency into a symbol and keep it that way. This is despite the fact that ‘XRP’ is simply a currency ticker derived from an abbreviation of the word ‘ripple’, just as XMR is an abbreviation of monero. To mark the distinction, a new logo has been proposed that is clean, minimalist and, tellingly, looks nothing like that of Ripple.

There’s even a community-run Twitter account for the new XRP symbol and Github which explains: “In order for XRP to be perceived as a ‘currency,’ it needs its own symbol. Just like the dollar sign ‘$ ,’ XRP needs a universal sign that denotes units of XRP. The current logo being used works great when referencing the company, and it should not be changed, but a character should be created to represent actual units of the digital asset.” The final logo has yet to be decided, but whatever version the community plumps for, it will look very different from the current shared logo of the company and coin.

Ripple Wants People to Stop Calling Its Coin ‘Ripple’
One of the proposed new logos for XRP

Why the Rebrand?

It has been theorized that the company is seeking to distance itself from its eponymous currency in  order to “desecuritize” it. The likelihood of XRP being a security, given the fact that Ripple has a majority holding, is strong. In the event of XRP being classified as such by the SEC it would have a major impact on XRP’s price and its availability on US exchanges. Given the foregoing, it makes sense for the company to emphasize the distinction between the company and XRP. It is likely to encounter significant difficulties, however, in convincing people that this is the case.

When Are We Decentralized Yet creator Jackson Palmer was petitioned to start referring to Ripple’s cryptocurrency as XRP, he issued a strong response:

Ripple Wants People to Stop Calling Its Coin ‘Ripple’

Semantics or Separate Things?

The case for why the company and XRP are separate entities, according to the company, revolves around the fact that the XRP ledger is open source, and thus any company can use it for their own purposes. While this is true, third party development has been few and far between, and the vast majority of XRP’s code commits have been performed by staffers. If the company can successfully separate itself from its currency, it is possible that the XRP ledger could become more attractive to companies wishing to utilize it for their own purposes. It seems unlikely, however, that the XRP ledger, for all its efficiencies, will become the Hyperledger of enterprise.

Ripple Wants People to Stop Calling Its Coin ‘Ripple’
Other community proposed logos for XRP

As cryptocurrency critic Preston Byrne has pointed out, the notion that “There’s not a direct connection between Ripple the company and XRP”, as stated by the company’s Director of Regulatory Regulations Ryan Zagone, simply doesn’t fly. The connections between the two are written all over the website, and every other third party news source. The Wikipedia page for Ripple (payment protocol) points out that “The network can operate without the Ripple company”, but evidence suggests that it would struggle to function if the company bowed out. For one thing, operating an XRP node requires obtaining permission from one of Ripple.com’s servers.

With 55 billion XRP locked in the company vaults, the simplest way for Ripple to rid itself of association with the cryptocurrency would be to burn the bulk of its supply of XRP. That wouldn’t look too good on its balance sheet though, and thus the campaign to rebrand ripple as XRP intensifies.

Do you think Ripple and XRP should be regarded as separate entities? Let us know in the comments section below.


Images courtesy of Shutterstock, Ripple, and XRP Symbol Twitter.


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The post Ripple Wants People to Stop Calling Its Coin ‘Ripple’ appeared first on Bitcoin News.

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Ripple Sued for Alleged Violations of US Securities Laws

May 6, 2018 |

Ripple Sued for Alleged Violations of US Securities Laws

A class action lawsuit has been filed against Ripple Labs, its CEO, and subsidiary. The plaintiff alleges that the defendants have violated the state and federal securities laws, engaging in schemes to raise hundreds of millions of dollars through the sale of unregistered ripple tokens (XRP).

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Class Action Lawsuit

Ripple Sued for Alleged Violations of US Securities LawsSan Diego resident Ryan Coffey has filed a “securities class action” lawsuit against Ripple Labs Inc, its CEO Bradley Garlinghouse, its wholly owned subsidiary XRP II LLC, and ten related persons. Attorney James Taylor-Copeland representing Coffey filed the lawsuit with the Superior Court of the State of California, seeking damages on behalf of Coffey and all others similarly situated.

According to the court document dated May 3, Coffey purchased 650 XRP at $ 2.60 per token around January 6 and sold them at approximately $ 1.70 per token around January 18. Coffey described:

[The lawsuit] arises out of a scheme by defendants to raise hundreds of millions of dollars through the unregistered sale of XRP to retail investors in violation of the registration provisions of state and federal securities laws.

‘XRP Genesis and the Never-Ending ICO’

Ripple Sued for Alleged Violations of US Securities LawsCoffey detailed in his filing, “unlike cryptocurrencies such as bitcoin and ethereum…all 100 billion of the XRP in existence were created out of thin air by Ripple Labs at its inception in 2013.”

Citing that 20 billion tokens were given to Ripple Labs’ founders and 80 billion to the company itself, he alleges that the defendants “earned massive profits by quietly selling off this XRP to the general public,” adding:

From 2013 to the present, [the] defendants have been engaged in an ongoing scheme to sell XRP to the general public in a never ending ICO…Defendants’ sales of XRP to the public accelerated rapidly in 2017 and early 2018.

He also claims that “these ICOs have become a magnet for unscrupulous practices and fraud.”

Coffey alleges that the “defendants market XRP to drive demand and increase [its] price,” including “blur[ring] differences between Ripple Labs’ Enterprise Solutions and XRP.” Other tactics include offering a bribe to Coinbase and Gemini exchanges to list XRP and promising R3, an enterprise software firm with a network of banks and financial institutions, a 5 billion XRP option, Coffey added.

At the time of this writing, XRP is trading at $ 0.91 on Bitfinex, a 73% drop from its high of $ 3.30 in January.

Ripple Sued for Alleged Violations of US Securities Laws

Violations of Securities Laws

Citing that the US Securities and Exchange Commission (SEC) has made it clear that digital tokens including XRP often constitute “securities and may not be lawfully sold without registration with the SEC or pursuant to an exemption from registration,” Coffey elaborated:

The XRP offered and sold by [the] defendants have all the traditional hallmarks of a security…However, [the] defendants did not register XRP with the SEC, and many of the representations [the] defendants made regarding XRP were designed to drive demand of XRP, allowing defendants to obtain greater returns on their XRP sales.

Last month, the SEC stated that both XRP and ether could be classified as securities. However, Ripple’s chief market strategist, Cory Johnson, told CNBC in early April:

We absolutely are not a security. We don’t meet the standards for what a security is based on the history of court law.

Do you think this securities class action lawsuit against Ripple has any legs? Let us know in the comments section below.


Images courtesy of Shutterstock, Trading View, and Ripple Labs.


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Ether & Ripple Doomed As Securities According to Regulation Expert

April 24, 2018 |

Ether & Ripple Doomed As Securities According to Regulation Expert

Former Obama administration financial regulator Gary Gensler believes cryptocurrencies such as ether and ripple appear as unregistered securities, and in current violation of the law. His comments carry considerable weight in the broader financial community. They also come after venture capitalists and lawyers invested in ether projects met secretly with the US Securities and Exchange Commission (SEC) to head off such regulation. Spokespeople for both coins insist they’re not securities.  

Also read: Telegram Urges Paper Airplane Protest, Pussy Riot Activist Arrested

Ether and Ripple Might Be Securities

Former Obama CFTC head Gary Gensler told The New York Times, “I would be surprised if 10 years from now this isn’t somewhere in the financial system in a meaningful way. But so much of the stuff that is being promoted now will not be around.” The ‘this’ he’s speaking of is cryptocurrencies, and as part of his appointment to the Massachusetts Institute of Technology (MIT), Mr. Gensler is weighing in on the phenomenon’s future with regard to regulation.

In particular, he’s focusing upon two of the most popular cryptos, ether and ripple, as potentially very susceptible to future designation as securities. Should that happen, many experts believe it would herald the decline of both. Securities regulation imposes a host of legal burdens upon registrants, and costs to comply are often prohibitive and burdensome.

Ether & Ripple Doomed As Securities According to Regulation Expert

“There is a strong case for both of them — but particularly Ripple — that they are noncompliant securities,” he told Nathaniel Popper. Bitcoin and others like it are decentralized to such an extent as to not trigger regulation, he believes. That’s not so clear in the cases of ether and ripple, both of which Mr. Gensler insists are in violation of securities law.

“2018 is going to be a very interesting time. Over 1,000 previously issued initial coin offerings, and over 100 exchanges that offer I.C.O.s, are going to need to sort out how to come into compliance with U.S. securities law,” the Times quotes him as saying. Indeed, representatives with heavy financial interests in ether-related projects recently were discovered to have secretly pled their case to the SEC in hopes of heading off what some say is certain regulation. That’s a potential problem for tens of billions of dollars in coins respectively when ether and ripple are combined.

Impact Not Good

Ether & Ripple Doomed As Securities According to Regulation Expert
Gary Gensler

Should such a designation be handed down, one of crypto’s largest markets, the United States, would essentially be cut off, made against the law for trading ETH and XRP on exchanges. It’s not too extreme to figure such a move would impact both coins’ prices, and probably not in a good way. 

Mr. Gensler, 60, was tapped by MIT’s Media Lab and its Digital Currency Initiative, along with being a lecturer at its Sloan School of Management (with a blockchain emphasis) for his expertise in the financial sector. His views on the future of regulation carry heft simply because of his past experience in the Obama administration, and previous connections to Goldman Sachs as well as helping to finance the ill-fated Hillary Clinton run of 2016. 

Asked for comment about Mr. Gensler’s claims, the Ethereum Foundation answered how it “neither controls the supply of nor has the ability to issue Ether, and the quantity of Ether that the foundation holds (under 1 percent of all Ether) is already lower than that held by many other ecosystem participants,” according to the Times. A Ripple spokesperson responded by insisting, “XRP does not give its owners an interest or stake in Ripple, and they are not paid dividends. XRP exists independent of Ripple, was created before the company and will exist after it.”

Do you think ether and ripple should be regulated? Share your thoughts in the comments section below.


Images courtesy of Shutterstock.


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