XRP Not a Security, Just Like Bitcoin (BTC) and Ethereum (ETH): Crypto Dad Christopher Giancarlo

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Wed, 06/17/2020 - 13:50
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Vladislav Sopov
Mr. Giancarlo, who protected Bitcoin (BTC) and Ethereum (ETH) from the draconian regulatory burdens of security status, claims that XRP is a similar story
XRP Not a Security, Just Like Bitcoin (BTC) and Ethereum (ETH): Crypto Dad Christopher Giancarlo
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Christopher Giancarlo, former chairman of the US Commodity Futures Trading Commission, co-authored an article that aims to clear the air about whether XRP should be regulated as a security.

Verdict from 'Crypto Dad'

In his article Cryptocurrencies and US securities laws: beyond bitcoin and ether for International Financial Law Review journal, Mr. Giancarlo put forward a number of arguments to prove that XRP digital assets have no indication of being securities. First of all, XRP doesn't represent a sort of 'investment contract'.

Chris Giancarlo publishes Cryptocurrencies and US securities laws: beyond bitcoin and ether
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At the same time, in accordance with the Securities and Exchange Commission report on The DAO Case, cryptocurrencies are investment contracts. XRP doesn't satisfy all requirements of the Howey test, which is designed to identify the instruments that should be regulated as securities.

The storage of XRP tokens doesn't imply the investment of money into the common enterprise. Also, XRP holders shouldn't expect profits derived from the development and marketing aspects of Ripple, Inc.

The last fact was particularly emphasized by Crypto Dad as he believes that market participants understand that:

The separation between XRP and Ripple is evidenced by the fact that the price of XRP is generally unresponsive to developments regarding Ripple and instead follows the movements of other cryptocurrencies.

XRP decentralization is sufficient to avoid security status

Mr. Giancarlo remembered the position of SEC division of corporate finance director, William Hinman, who treats Bitcoin (BTC) and Ethereum (ETH) as sufficiently decentralized systems that shouldn't be regulated as securities.

For Crypto Dad, XRP is much more decentralized. This aspect is enhanced by the no-ICO essence of the XRP token, which has been fully operational since 2012 when the XRP Ledger was launched.

XRP is broadly accepted as a utility token for liquidity. Thus, Mr. Giancarlo suggests it should be treated as 'a currency or a medium of exchange' but not as security.

Christopher Giancarlo served as the thirteenth CFTC Chairman in 2017-2019. Prior to this, he served as the commissioner for this body for three years.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

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Fri, 01/15/2021 - 18:02
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Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
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While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
Image by Etherscan

As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)