Regarding the SEC's lawsuit against Ripple (XRP), we can draw 3 conclusions.
- 1) Decentralization in crypto is of utmost importance.
Regulators can only knock on your door if you were a centralized body and Ripple was, it was a private company. Btc runs on completely different lanes and various crypto have the potential to do so, there is no owner / CEO to grab the balls. In addition, a real crypto must be resistant to censorship. Not even the largest holder of btc can have influence in changing its protocol.
- 2) Monetary policy, the reason why some crypto has max supply based on proof of work or participation.
Value is not generated out of thin air. They issued 100,000 Million XRP at zero cost and shared it among themselves. Then they sold it for usd without disclosing what they did with the income and promising a potential for appreciation, so they investigated them for 3 years and gathered enough evidence to ensure that those funds only enriched the founders. Being an investment contract, they are issuers of value offer, a security and therefore they were reached by the local Securities Law, they even paid employees or third-party services with XRP. They sought advice from a law firm but did not heed their warnings. They did not appear with the SEC and continued with the large-scale distribution filling their pockets. They had the systematic method of offering XRP to institutional with 30% discount of the market price with the condition of blocking them for a few months, high crooks.
- 3) Having XRP is the same as having points from the YPF Serviclub (popular fuel station points card in Argentina).
Summary: In the end Ripple was useless and can have several analogies. It's the Theranos of the crypto world, a pre-funded vision without the know-how. What's more, we can even say that XRPs are like the Argentine pesos issued by the government but without a flag or Law 1130 of Forced "Legal" Course and without the apparatus of the use of force by the state as an accomplice, the only thing that today supports our counterfeit money.-
These two guys, Garlinghouse and Larsen, are being accused before the Court, banned from all commercial activity and demanding the return of the profits with interest to the investors. The pseudo-crypto shit went wrong, today human greed is priced pricelessly.
Can we really imagine what Bitcoin is next? Definitely not.
