Home / Ripple / Preston Byrne recalls that Crypto Community Ripple Labs has created an XRP currency

Preston Byrne recalls that Crypto Community Ripple Labs has created an XRP currency

  Preston Byrne reminds Crypto Community Ripple Labs created an XRP coin

Remember that Ripple Labs created XRP – No problem How much do you want to forget [19659003] So far, no major cryptocurrency has been declared a security. Some cryptocurrencies like XRPs, however, have a slightly higher risk than others to be declared safe.

In an effort to prevent XRP from declaring security, Ripple Labs distanced itself from its creation of XRP, the idea is to convince people that the value of XRP (the digital currency) has a limited connection to Ripple value (the company). The idea is also to convince XRP users that the currency is decentralized and independent – just like BTC, BCH, ETH and the other five major cryptocurrencies.

Preston Byrne, an English lawyer, wants to make sure not to forget that XRP and Ripple are closely linked to this day. Byrne published a blog post previously titled "For the last time, Ripple Labs created XRP":

"There has been a meme propagated in recent months by the people of Ripple Labs. meme is that the XRP token has absolutely nothing to do with Ripple Labs and that the protocol that runs XRP is totally decentralized, to Bitcoin.They do not agree. "

The central battle here is between a company private call Ripple Labs and a digital currency created by the company XRP.

Bloomberg Claims XRP and Ripple are completely independent from one another

Preston Byrne was motivated to write his post on Ripple and XRP after seeing a Bloomberg report. In that report, Bloomberg discussed Ripple Labs and XRP as separate entities, saying that the two are totally independent from one another.

Byrne then points out that statements like this are repeated on Twitter by random people who are unusually committed to insisting that XRP is decentralized and independent.

A tweet by Darla Jemmason (@DJemmason) is particularly striking in Byrne's eyes. That tweet states, among other things, that "XRP was not created by a company" and that "XRP is more decentralized than BTC or ETH" and that "XRP was created and issued prior to the establishment of the company . "

Byrne spends the next a thousand words of his article proving that these points are wrong.

Why the connection between debate on Ripple Labs and XRP is important

Today XRP is one of the largest digital assets in the world by market capitalization. Some people avoid using the term "cryptocurrency" to describe XRP because it lacks certain traits of other cryptocurrencies.

Whatever you call XRP, it is more likely to be labeled as security than most other digital tokens.

The United States Securities and Exchange Commission uses something called "Howey Test" to define security. If something is found to be a security and the sale of that security has not been registered with the SEC, the shares could be declared invalid and the issuer could be penalized.

Howey's test basically states that a resource will be considered a security if it were sold to investors with the expectation that the stock would grow in value as a commercial enterprise grew in value without investor participation .

If someone sells you a piece of paper for their farm, for example, and claims that the piece of paper authorizes a share of 1% of the orchard, then you would expect the share to grow in monetary value as a hand that the orchard expands, even if you do not work in the orchard for any reason. This is what turns a piece of paper into a security – and that's what violates Howey's test.

XRP violates Howey's test? Should XRP be considered a security?

In the years since the launch of XRP, Ripple Labs made every effort to distance itself from XRP. The idea is that if XRP is sufficiently separate from Ripple Labs, XRP will not grow or decrease in value based on Ripple Labs business decisions, making it much less likely to be considered a security and much more reliable within of the cryptographic community.

Byrne decided to determine – and provide evidence – that Ripple Labs created XRP.

Ripple created XRP?

There is not much debate about this problem. Here is what Byrne has to say about this after a significant research:

"The documents say everything. In my opinion the answer is" yes, Ripple created XRP, owns most of it and was released after the establishment of the company "Open and Closed Determination."

Byrne cites evidence as the fact that Ripple Labs was incorporated between 17-19 September 2012 under the name of Newcoin, Inc. in the State of California. The founders' agreement was signed on 17 September 2012 by Chris Larsen, Jed McCaleb and Arthur Britto.

These incorporation documents mention:

"what appears to be a very slave IP assignment or a reference to an IP assignment that is taking place in an agreement that is outside the four corners of this letter … The assignment shows that Ripple's intellectual property software had to be transferred to Ripple Labs … and would later be owned by Ripple Labs and not by Arthur Britto. "

The document also explains open nature software source:

"C & # 39; was also an agreement, or here (if so, mishandled) or reference here and agreed elsewhere in a more complete way, that any further contributions by Britto or anyone of the Other founders of Ripple software would be open source.In return for this license, Ripple granted a lifetime license to Britto to build apps with money (it is not known if that license is assignable or not). "

In addition, the document mentions the fact that the software is "anticipated" to create 100 billion credits. The documents describe something called "Ripple Credits", which was obviously subsequently re-branded to XRP.

Finally, the documents mention that on the official register of Ripple Credits, 80% of the credits "must be assigned to the company". That's why Byrne says it's important:

"Now, we are told that on this official register, 80% of the ripple credits will be assigned to the Company, as determined by the percentage share of all the existing credits established in the ledger created, approved and adopted by the majority of the Founders as official ledger. "So we know that of the software that Ripple possesses, which does not yet exist, in relation to which an official ledger must be created, to Ripple 80% of tokens should be assigned to it for their own purposes. "

The First Transitory Transaction on January 1, 2013

The first Ripple transaction occurred on January 1, 2013. At that time, the official" Ledger "of Ripple was launched, with Ripple owning all the IPs of software and also has 80% of the total token in the software.

It is required online, however, that the Ripple transactions preceded the formation of Ripple Labs. As Byrne claims, it is not true. [19659003] Byrne then publishes the transaction explorer of all transactions on the Ripple register from August 17, 2012, a month before Ripple Labs was incorporated and on January 1, 2013. There is nothing about the transaction. explorer: On January 1, there were 18 transactions.

Yes, the blockchain existed technically before Ripple Labs was formed, but no transaction appears to have taken place.The first XRP transactions occurred on January 1, months after Ripple got it formed as a company.

Is XRP an independent digital asset?

The debate over the possibility that XRP is an independent digital asset is controversial. Here is how Byrne summarizes his research:

"To conclude, all this suggests to me rather that it may not be entirely accurate to characterize XRP as completely independent of Ripple Labs, and it is certainly not accurate to say that XRP & # 39; s l & # 39. Existence has always been separated from Ripple's.The name of the trademark is owned by Ripple.One time, the software was owned by Ripple.A very large number of tokens was, is, and will probably continue to be owned of Ripple. "

Is XRP decentralized?

C & # 39; is also an important issue whether XRP is decentralized or not.

Some analysts the consent mechanism of XRP is completely decentralized. Others argue the opposite.

Byrne does not worry too much about this problem, preferring instead to mention two different tweets on the subject.

A tweet of @XRPTrump described Ripple's consensus as "completely centralized".

Another tweet by Peter Todd (@PeterKTodd) described Ripple as centralized. [19659005] Because Ripple is centralized in a tweet. https://t.co/Vace3agYov

– Peter Todd (@peterktodd) January 1, 2018

Byrne obviously does not agree with the claims that Ripple Labs did not create XRP – and that's why he wrote a blog post highlighting the many reasons why XRP and Ripple Labs have been connected since the beginning.

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