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There’s no such thing as “new” XRP. There is a finite quantity and that quantity is all of the same age

Dec 30, 2018

Let me clarify: with “new” XRP I refer to the supply of XRP which is currently not in circulation. That’s about 60 % of the total supply. Who gets the money when that hits the market?

Dave

@David87162523

Dec 30, 2018

Ripple, the company. It’s their XRP after all

Ole André

@4goals86

Dec 30, 2018

Exactly, that’s the central authority. Thats why BTC is a commodity and why XRP is a security.

Dave

@David87162523

Dec 30, 2018

Incorrect. Ripple is an owner of XRP. Not a central authority on the decentralised open source ledger. Ownership, albeit a large qty, does not denote authority (ala Satoshi)

GIF

Ole André

@4goals86

Dec 30, 2018

Decentralized userbase sure, but that’s not the point. Ripple is the only issuer of XRP, unlike BTC, where coins are issued based on PoW. That’s why XRP is a security.

𝚃𝚒𝚏𝚏𝚊𝚗𝚢 𝙷𝚊𝚢𝚍𝚎𝚗

@haydentiff

Dec 30, 2018

XRP doesn’t have an issuer.

Ole André

@4goals86

Dec 30, 2018

What do you want to call it? One single company, Ripple, created the entire supply of XRP and gets paid every time it increases the circulating supply. A playbook definition of a security.

𝚃𝚒𝚏𝚏𝚊𝚗𝚢 𝙷𝚊𝚢𝚍𝚎𝚗

@haydentiff

Dec 30, 2018

XRP was created before the company was formed. Ripple didn’t create XRP.

Please explain: If I create a token and sell it 100% to another company after creation, and the 2nd company can sell it to the public, does that mean that token can never be a security?

Replying to

No. In the US, something can be not a security and then become a security purely based on how its marketed, and vice versa. The test is highly subjective and facts-specific.

8:11 AM · Dec 30, 2018Twitter Web Client

Replying to

Why does the ripple army try to convince people Ripple did not create xrp? How does that matter? Ripple stores in vaults 60% of supply, marketed the coin to the people, signs contracts forcing buyers not to sell.. How is it not a security?

Jesse Powell

@jespow

Dec 30, 2018

There is some argument that it may be more legally problematic if XRP were created by OpenCoin (Ripple Labs) rather than by individuals who gifted it to the company. Those things don't necessarily make it a security, just like De Beers' diamonds are not a securities.