SEC goes after XRP/Ripple, and its leaders. But, why the underhanded timing, and what is the real aim?
Okay folks, so I am a day trader. Some hate what I do because they largely don't understand it. Some hate what I do because they suck at it. Others hate what I do, because they think it goes against the philosophy of cryptocurrencies. If they understood economics in a similar light to microbiology, nanotechnology and quantum physics, they would also understand that without traders like myself, there would be essentially zero value in their coins.
Yeah I know... let the flame wars begin. But, it's true. Volume creates liquidity. Liquidity creates the ability to purchase what others are willing to sell. Without those beloved matching engines, you either don't get ANY sats to stack, or you pay out the nose for it. So, would you rather have high competition, highly liquid assets worth hundreds of billions of dollars, or a crappy protocol shared by a network of sad people earning nothing in fees, doing it your way without any actual swing and day traders creating the liquidity? Okay, not meant as an attack, but rather as a snarky intro!
I state this, because when I had a lot at stake in XRP, it was barely moving for the better part of the year. Frankly, it was not a great asset for actual trading. But, I entered positions I felt confident in during an exchange promotion for zero fees XRP/USDT. I held out until I got my tiny profit and added to my overall fiat value. Then, XRP pumped like crazy. I personally believe it was locking in step with Bitcoin like ETH and the other top assets that can still actually pump directly with its price for now, but also because insiders knew the lawsuit was coming. I mean, government and government-informed insider bankers. Yep, I firmly believe there are tens of billions of dollars now lining the pockets of insider certified investment circles as a result of the XRP pump. They dumped on your head, well ahead of the drop.
This is not "that" post where I tell you that the SEC filed suit against Ripple and it's top ranks. You already know that if you opened this to actually read and not just to score your fractional tip-earnings. You already know that the price of XRP got dropped faster than a big ball of electric bills on New Years Eve. This is about my greater concern.
The U.S. government, which better or worse, is my government, has a history of waiting until the governing bodies, and the public, are at their most absent, uninformed, unaware, and vulnerable, to make broad, swift economic changes to the system. Insiders make the decisions, they coordinate with now global banking institutions, and they don't do it to serve the people. They do it to ensure 'the people' are left out of the argument. In fact, it is one of the best arguments for a small government than anything else. If you can't control your funds, and find ways to earn your way to a better future, then there is very little left that is special about the U.S. and it's proposed freedoms. Personally, I believe in the philosophy that has long benefited the most people, which is that the right to life, liberty, and pursuing one's freedoms based on their rights to property, are based solely in the autonomy that NO MAN can grant these rights to them. You thought that this kind of economic power was designed by Satoshi. It was not. The reason our institutions have become so corrupt is because we have allowed our rulers to remove choices from the table little by little. If a human cannot be deemed free by an institution of humans, then they, by birth, have the right to pursue their own freedoms. That is what is at stake with the Ripple lawsuit.
When government financial institutions illegally pursue investment opportunities under false pretense, we are all in the cross-hairs. You think that privacy coins can be private. You think that mixers can protect your privacy. I've said, since 2017, that it is naive to think the technology can protect you, when all the lawmakers have to do is control the flow in, and out, of crypto. The argument runs a mile deep, but if crypto is determined by a value from the marketplace, then think... businesses still have to report their earnings, which in itself guarantees if you pay for, lets say, a dinner, with a privacy coin at a cool business that accepts your coin of choice, they will be reporting that earning in their taxes, and those coins will in fact end up reported on their end at the very least. Should those who transact only have anonymity as a customer? You'll see the bigger picture the more the crackdown happens.
But, there is a convenient coordination of international financial agencies aligning to determine KYC/AML for every single wallet, every single account, and every single purchase on blockchain. They aren't going to lose. Exchanges aren't going to risk getting sued or shutdown. They WILL comply. Huge privacy breaches of your address, name, social, govt. ID, and yeah facial recognition are all going in a global database without your desire or consent. If you believe in anonymity, you are likely going to find your coins useless, in my opinion. That "not your keys, not your coins" is going to come at the same price of freedom and privacy as those allowing their funds in custody.
It is wrong. It is not fair, but it is the game being played.
What is the reason, then, that I care so much about what happened, is happening with XRP?
Because this is not just about whether they are a security. It is a trojan horse to the bigger argument over stablecoins. Tether, USDT, has not been popular in the circles of crypto enthusiasts, but claims have been mostly unfounded and misunderstood, and much like the lesson in Real Estate that Buyers are Liars, traders are hypocrites. The USDT volume and market capitalization is the only coin that outperforms Bitcoin. Let that sink in. You buy Bitcoin with fiat, and with stablecoins. Otherwise, how are you going to get any Bitcoin? Mining? The few that do it lose money with the hope of future gains. And guess what, they pay for their equipment and energy with FIAT! So, get down off yer high horse and get real.
You may be stacking sats to escape the crutches of fiat, but you got their with freakin fiat.
If crypto is devaluing the dollar, that is NOT winning. Yep, I repeat, that is NOT winning. Would you like to get less and less crypto for your fiat value? Then, what do you think you will be able to purchase your sats with?
The real end game here, in addition to your privacy, is the great transition from a free and open crypto market, to stablecoins issued only by global CBDC's, and the nationalized coins that they back. The ability to transact is going to be surveillance money. Every person will be KYC'd and on file, and every transaction will track where you spend, how you spend. We think of blockchain as the great leveler, creating new wealth, but it is also a trap in the wrong hands. When the SEC filed suit, they revealed their hand. The documents are out there now, and nationalized coins are a battle of who has their hat in the ring. Its going to largely be:
Euro, Dollar, Yuan and Libra of all things. The nation of Facebook is going to be a major player, and it is right around the corner.
Is there any good news? From my analysis, fundamentals are largely crap. They are necessary, but in a meritocracy, projects would succeed based on whether they are good or not. Bitcoin is king, not by doing anything better than anything else, but by being the first to succeed at garnering interest and setting up a network. ETH is huge bc largely it was the second biggie to do what it does and it is the platform that made it easy to make coins. Litecoin is big bc it is a new Bitcoin, the silver to gold, and it is early. Sometimes, there are projects like Dash, Link, and a few others adopted for confidence in team and tech, but most projects pump hard in their first 2 months and drop by 98%. That is the vast majority of the market, and a solid 20% of those are serious orgs with serious funding rounds.
This shift into central-bank-coins and government issuance that is coming, is a bad thing. There is a silver lining.
The message is clear. It actually has been clear for some time. The top coins get a pass.
There is too much government and banker money in them to allow them to fail. Essentially, Bitcoin IS too big to fail. It is now backing and funding perhaps the most dangerous ponzi's and money laundering schemes in history; the bankers and government mafioso. Bitcoin, Litecoin, Bitcoin Cash of all things, and Ethereum, are getting a pass, at least for now. EVERYTHING else is at play. Everything. Every single thing.
The exchanges, though we need them, yeah, we need them, are not our friends. They will dump a coin at the drop of a hat if they think it will bring government heat. Hey, if anyone has the ability to go head to head with government agencies, it is they. The top exchanges should well by now have already launched campaigns against government agencies to define the line in the sand. Investors simply want the ability to invest. Traders simply want the freedom to trade. Leave us alone. Stop trying to protect us from evil criminals that we never interact with. If we get scammed, THEN and only then do we want your intervention. Just like any other situation, if someone steals our funds, especially if it is an exchange, you should fly in and do something to help us. But, we all know that funds are almost never recovered, and rarely do you hear of prosecutions. So, you go after Ripple. Weak. Very weak.
Lets say that they ARE a security. Fine. Prove it, and then require them to register as a security and pay a fine... and not a big one either. This is a shake down and you know it, SEC. It is the very extortion you claim to want to protect us from.
People of crypto: you deserve the right to make your own decisions. If you want to buy the next poopcoin be my guest. If you want to invest, do it. If you want to stake, then stake. If you want to do nodes n stuff, do it. But, do it with the awareness that the global governance is trying to come against your right to do so, and it is going to get ugly.
My hope is that BUSD, USDC, TUSD, USDT, Pax and every variant is left alone to serve its purpose. My hope is that CEX and DEX are both permitted to operate with a certain measure of low-level compliance. If financial agencies were designed to promote growth in the tech sector, they would monitor but not intervene. We do not need regulatory clarity. That can be done in 5 seconds. That has never been their goal. They simply want control, and they want your money while they're at it. If the launch against stablecoins comes as I expect, the entire paradigm is going to shift, far too early in this new asset class. And, don't think classification as security is the only problem.
Categorizing a coin as currency, does not actually help crypto that much either. Technically, it isn't permitted by most countries for there to even BE an alternate currency, issued outside the rules for citizenship. Technically, they can prevent alternate currencies as easy as calling them counterfeit fiat. If it takes funds out of the circle of banks and fiat issue, then they do not want it. Rather, once again, they want the digital nationalized coins backed by nationalized private sector centralized banks. It is ALL the same players that go back to the Federal Reserve. There is nothing alluring about CBDC's compared to Bitcoin. It's the same crap we ran from. So, keep your eyes open.
Whether you love Ripple or hate them, whether you are a HODL idealist or a greedy trader, your crypto fate is coming up in 2021 just like mine. We are in a race against control from the powers that be, and they have announced their lack of reserve in tanking your value and doing so in a heartbeat, when we are all the most vulnerable. Where else is there to go to make sound financial decisions? I couldn't tell ya, so I'm forging ahead with a plan to stick with the top coins and hope for the best.
And for now, Crypto Gordon Freeman, the Free Man, fighting for the freedom of crypto everywhere... out.