Ripple today revealed that they are under SEC scrutiny and might face a lawsuit owing to the sale of unregulated securities of XRP token. Ripple is among the top cryptocurrency companies that manage the “distribution supply of XRP” and offers banks cross-border remittance service using the XRP ledger.
Ripple has adamantly maintained throughout that XRP is a “true cryptocurrency” and not a security, as the functioning of the digital asset is independent of the company. The firm has been at the receiving end of several lawsuits pertaining to XRP’s status as a security, but the firm managed to keep the token adrift until now.
Ripple also released a summary about XRP not being security as deference, however, the defense seems to have enraged many in the crypto space including Ethereum co-founder Vitalik Buterin. The crypto firm in its defense said,
XRP is a widely adopted digital asset based on open-source blockchain technology, with an extremely robust, fully-functioning currency market. XRP consistently ranks among the top three virtual currencies by market capitalization—alongside bitcoin and ether, the two Chinese-controlled virtual currencies that the SEC has stated are not securities.
Looks like the Ripple/XRP team is sinking to new levels of strangeness. They're claiming that their shitcoin should not be called a security for *public policy reasons*, namely because Bitcoin and Ethereum are "Chinese-controlled". 😂😂https://t.co/ts02JqrTrB pic.twitter.com/mKwEzGIetk
— vitalik.eth (@VitalikButerin) December 22, 2020
Buterin did not take the comments of Ripple calling Bitcoin and Ethereum “Chinese-controlled” and blasted Ripple for their bizarre claims and also calling it a “Shitcoin.” Shitcoin is quite a popular term used mostly by Bitcoin and Ethereum proponents for other crypto tokens.
Messari Co-Founder Calls Ripple “bad limb”
XRP community is one of the most active and passionate crypto community on social media and often does not take any criticism thrown towards the token kindly. A couple of weeks back, Ryan Selkis the co-founder of Messari wrote a yearly review for cryptocurrencies where he went a little harsh on XRP calling it a shitcoin. He received a lot of flak from the XRP community for his words but maintained his stance. After the news about the SEC lawsuit broke out, Selkis tweeted,
In before Ripple PR’s “we’re all in this together” nonsense.
No. We’re not.
Amputate the bad limb when needed.
— Ryan Bitcorn Selkis (@twobitidiot) December 22, 2020
XRP is currently the third-largest cryptocurrency by market cap, even though the token price has barely moved for nearly three years and only showed some price action towards the end of November. The news about the SEC lawsuit also took a toll on the token price tanking it by 18% taking the price below $0.50.