Ripple in Hot Water For Misleading Relationship with XRP in ‘Discovery’ vs ‘Creation’ Debate
Ripple has recently been criticized for misrepresenting the fact that it created the XRP tokens. Nic Carter, the co-founder of Coinmetrics.io, has recently affirmed the company is trying to “obfuscate the nature” of it's relationship with the XRP technology.
For the record, these psychopaths are still literally and without a shred of irony claiming that they "discovered" XRP as opposed to having created it. https://t.co/YaxmFkWLtW
— nic carter (@nic__carter) October 9, 2019
According to Carter, “these psychopaths” (meaning Ripple) are claiming that they discovered XRP instead of creating it, which is what actually happened. The accusation comes from a quote that was said by Cory Johnson, who worked as the Chief Markets Strategist of the crypto company for around a year.
Ripple’s relationship to XRP is akin Chevron’s relationship to oil. We have a lot of it, we believe it’s a superior technology and we support its many uses — for billions of reasons. But we don’t have all of it, we don’t control it and we aren’t it.
— Cory Johnson (@CoryTV) October 4, 2018
Johnson affirmed that the relationship that Ripple has with XRP is similar to the kind of relationship that Chevron has with oil because the company does not control all of it and is not the same thing. The company's representative was basically trying to disassociate Ripple from its creation.
Carter also cited an article written by the attorney Preston Byrne, in which he believed to be a good take on this discussion. According to Byrne, no one used XRP before Ripple was created.
“No ‘Official Ledger’ containing XRP or any transactions on the ledger which is today used as ‘XRP’ existed before Ripple Labs, Inc. (initially named Newcoin Inc.) was incorporated on 19 September 2012.”
This is the main reason why he believes that XRP is a Ripple security: it did not exist nor was it used before the company. The technology is directly related to the company, despite how “decentralized” it can be. It makes no sense to compare it to oil, which already existed before it was extracted.
“One really important distinction is, the XRP ledger existed before Ripple the company. Certainly we are an interested party in the success of the XRP ledger, for sure — we own a lot of XRP. But it’s a little bit like saying, Exxon owns a lot of oil. That doesn’t make oil a security.”
The only real reason why Ripple keeps doing this, is that it does not want its tokens to be labeled as securities. This would put its business at risk, so it has to maintain an image that the network is decentralized and that there is a real difference between Ripple and XRP, especially when the difference is very thin.
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