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- Peter Brandt explains how the SEC would have declared XRP as a title if it understood it correctly.
Peter Brandt, a well-known investor and chart analyst, recently spoke out about the state of regulation which is currently in a gray area for the XRP token.
According to Peter, the token from the San Francisco-based blockchain initiative Ripple is actually a security token, meaning the coin should fall under the regulatory scope of the U.S. Securities and Exchanges Commission.
Responding to another user on Twitter, he said:
XRP would have been declared as a stock if the SEC understood cryptocurrencies. This is a classic case of a market manipulated by a bag holder.
– Peter Brandt (@PeterLBrandt) November 10, 2020
As you can see from the tweet above, Peter responded to a statement from another Twitter user who claimed that the token is primarily owned by the company that created it. Responding to this, Peter said the token is a “classic case of a market being manipulated by a stock exchange holder”.
Over the course of this year, the ripple token has performed rather weakly. There hasn’t been much activity on the network recently, although a lot of chaos has occurred for all other alternate currencies and even the King coin, bitcoin.
Ripple appears to be a company trying to get as far away as possible from the token it once created. However, the company owns a significant amount of the token, and according to official reports, the company actually owned 60 billion tokens with 55 billion in escrow accounts in July 2018.
This is where the discussion begins about whether the token is centralized or decentralized. The conversation has been rife in the crypto community in recent years and the fact that the company owns around half of the tokens is a big talking point. Furthermore, there is a lot of uncertainty when it comes to regulation for the token. She has previously been involved in numerous lawsuits that declared the token as an unregistered security.
For more news on this and more crypto updates, keep it with CryptoDaily!
© 2020 CryptoDaily All rights reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.
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