Cory Johnson said it first. Ripple and XRP are not the same things; XRP is not a security. Yet, the San Francisco-based company often finds itself repeating this information. The last hour has arrived today, Monday 17 September. Not only did Ripple's head of government and regulatory relations report the XRP security debate today, but Sagar Sarbhai also noted that the narrative in the cryptography industry is changing.
True or false?
Ripple and XRP: Security or not?
First, Sagar Sarbhai told CNBC that Ripple does not believe XRP is a security. Sarbhai has provided three reasons for this:
- If an investor buys XRP, that individual will not get a stake in Ripple the software company. Because? "Dividends are not paid by Ripple."
- As Cory Johnson said at the start of the summer, Ripple and XRP are two separate entities. If Ripple disappears, the XRP ledger will remain. "XRP ledger is open-source" said Sarbhai.
- Ripple owns only about 10 validators out of 150.
The Crypto industry is changing
We have heard of the XRP security debate for months now. However, Sarbhai said something relatively fresh and new today, which was interesting.
In the mind of this Ripple executive, the narrative in the cryptography industry is changing. A few years ago, according to Sarbhai, the mentality of cryptographic space was "blockchain good, crypto bad." Everyone said that one day the blockchain would have passed the cryptocurrencies.
But according to Sarbhai, everything is changing. Now, "more politicians and regulators are [realizing] that there is a strong advantage that digital resources and cryptocurrencies bring."
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does not seem that this Ripple Executive is the only one to think so too. This week, Jack Ma of Alibaba said that blockchain is about to become "meaningless" unless it helps the environment.
There are two main aspects to be taken from this XRP news. First, the difference between Ripple and XRP is now recognized, or is Ripple that the company will have to remind the world of the difference for the rest of its life?
And two: is the cryptography industry really changing?
What do you think?
Featured image: Depositphotos / © Melpomene