[ad_1]
The debate about whether or not XRP is a security has overheated since 2016. In fact, just last month, Ripple revealed that their legal executives work with SEC to convince regulators otherwise.
Now, Nicholas Weaver, a researcher at the International Computer Science Institute & Lecturer at UC Berkeley has taken some shots at the controversial cryptography on Twitter.
We go through "Howey Test" with XRP ("Ripple"). Here because @SEC_Enforcement he needs to come down like a ton of bricks on those behind the company's Ripple …
XRP is a security, and as such, Ripple Inc. is committing fraud with warranty claims not following the rules.
– Nicholas Weaver (@ncweaver) October 24, 2018
The Howey Test indicates a case from 1946 that reached the Supreme Court, SEC v. W. J. Howey Co., a lawsuit involving the Howey Company of Florida. The test determines whether the value of a transaction for one of its participants depends on the work of the other. Precisely, Howey's test concludes that a transaction means an investment contract if "a person invests his money in a joint venture and is induced to expect profits exclusively from the efforts of the promoter or a third party".
The professor then walks through Howey's test XRP step by step.
# 1: "Is it an investment of money?"
Diavolo yes People put their money in XRP, and they literally call it an "investment". Then leave control # 1.
# 2: "C & # 39; is an expectation of profits from the investment?"
Hell yes
– Nicholas Weaver (@ncweaver) October 24, 2018
Weaver is right. All those who buy XRP he calls it "investment" and expects profits from it. So it shows in points 3 and 4 that this type of investment is a joint venture and third parties can also benefit from it.
3: "The investment of money in a joint venture?"
Yes. The "wavy network".
4: "Do the profits come from the efforts of a promoter or a third party?"
Well, yes, even if the XRPs are strong, there are many investors who do not make the shilling …
– Nicholas Weaver (@ncweaver) October 24, 2018
In his last tweet, the researcher also took to Ethereum.
In fact, virtually any ICO is not limited to accredited investors where there is the quiet part of "yes, this is for a & rs; product, but you do not want the product, you can sell the token to someone other "fails the Howey test.
Including Ethereum.
– Nicholas Weaver (@ncweaver) October 24, 2018
In particular, Dr. Doom, Nouriel Roubini also commented on the same problem by tagging XRP as non-compliant security. Roubini is one of the most vocal opponents of crypto and blockchain technology.
[ad_2]Source link
