Home / Ripple / Researcher Nicholas Weaver Of Berkeley states that the XRP is a security, a committed fraud

Researcher Nicholas Weaver Of Berkeley states that the XRP is a security, a committed fraud

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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.

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.

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.

In his last tweet, the researcher also took to Ethereum.

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.

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