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Ripple CEO Says – Our Transparency Has Opened Us Up to Attack

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Ripple CEO Says - Our Transparency Has Opened Us Up to Attack
Ripple CEO Says - Our Transparency Has Opened Us Up to Attack

Alluding to the spate of controversies that have beset the project, Ripple CEO, Brad Garlinghouse, has argued that Ripple’s “transparency has opened us up to attack.”

In an interview for the Off the Chain podcast hosted by Morgan Creek Digital Assets co-founder Anthony Pompliano on Oct. 9, Garlinghouse said there is a bunch of misinformation out there, but claimed that this is in part because Ripple is “ten or a hundred times more transparent than anyone in the crypto community.” He said:

“Our transparency has opened us up to attack […] Ripple has tried to lead by example.”

Pompliano revealed that by far the most listener questions related to the high-profile controversy over Ripple’s handling of XRP token sales, to which the CEO reiterated his earlier reassurances that the firm would choose to dump tokens and depreciate XRP’s value given that it is “the most interested party in the success and health of the Ripple ecosystem. We own a lot of XRP.” He outlined how Ripple manages its XRP token holdings, noting that the company had created 55 escrows, each containing 1 billion XRP that become unlocked once a month.

Once released, he said Ripple returns 80% of the XRP into newly-created escrows for the future. He emphasized that while Ripple may own the escrows, they have cryptographic signage on their contracts, meaning that the firm can’t open them at its behest. With the remaining released XRP, Garlinghouse said Ripple either sells the tokens programmatically or over-the-counter (OTC) to institutional clients wanting exposure to XRP. Now that the market has become more liquid, however, he said these OTC sales are declining and Ripple often refers to such clients elsewhere. Overall, Garlinghouse estimated that Ripple sells XRP at 10 basis points of daily market volume — i.e. 99.9% of XRP volume is not connected to Ripple.

Garlinghouse also claimed that Ripple is the “only example of crypto and blockchain being used at scale, period.” While he conceded that he was himself long on Bitcoin — “it is working, it is scaled” — he said that when it comes to blockchain enterprise solutions, Ripple is the only project out there that has passed experimentation and moved onto scaled implementation. In a sign, perhaps, of the prevalence of Ripple-related controversies, Garlinghouse’s discussion of the relation between Bitcoin and XRP circled back to another contentious issue. The CEO noted that several former Bitcoin engineers, as well as Ripple founders, were involved in the creation of the XRP ledger, yet underscored that “the XRP ledger was created before the company Ripple existed.”

As reported, community members have previously taken the company to task for ostensibly attempting to obfuscate the nature of its relationship to XRP. Cory Johnson — a former Bloomberg TV anchor who worked roughly a year as Ripple’s chief markets strategist — has come under fire recently for his controversial analogy that “Ripple’s relationship to XRP is akin [to] Chevron’s relationship to oil.” Garlinghouse himself had previously used the analogy in an argument against yet another controversy: XRP’s possible security classification. “Exxon owns a lot of oil,” he noted. “That doesn’t make oil a security.”

Bitcoin News

Litecoin’s hashrate, difficulty close to early-2018 lows

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Litecoin’s hashrate, difficulty close to early-2018 lows

CoinMetrics recently released the 25th issue of its weekly State of the Network series, a report that analyzes network data to produce insights into the cryptocurrency space. The report stated that while XRP’s daily average transaction value surged past ETH last week, XRP and BCH’s transfer values dropped significantly this time around.

The report also observed that Litecoin‘s adjusted transfer value had shot up by over 89%. However, its low transfers and transaction count signified that a relatively small number of addresses had been moving large amounts of Litecoin.

BTC daily fees were reported to have increased by 10% for the second week in a row, as Bitcoin continued to climb ahead of ETH in that regard, with BTC averaging $346,900 compared to ETH’s $91,800. Additionally, XRP fees were reported to have grown by over 100% over the last week.

The report further found that both the Litecoin hash rate and difficulty have been in free-fall since July, and are now on the verge of reaching lows not seen since early-2018. Bitcoin’s difficulty was also reported to have been adjusted downward on 7 November, since the reported drop in hash rate last week.

Among large-capitalization assets, Stellar was reported to have recorded the largest gains over the past week, gaining 19% after the Stellar Development Foundation effectively burned 55 million tokens by sending them to an account that cannot sign transactions. Among smaller capitalization assets, Cosmos showed a 24% increase without the appearance of any specific catalyst, while Tezos gained by 41% after Coinbase announced that it would be offering staking rewards on the platform.

CoinMetrics also reported that short-term measures of correlation earlier this year between Bitcoin and gold returns had reached one of the highest levels in history.

Additionally, CoinMetrics claimed that gold’s recent large sell-off and negative 30-day correlation with Bitcoin suggests that the digital asset’s reaction function to macroeconomic and geopolitical developments is complex and inconsistent.

The CM Bletchley Mid-Cap and Small-Cap indices were also reported to have outperformed the larger cap indices, largely due to the performance of Tezos, which made up 10% of the index. Also, since Bitcoin is a major component of both the Bletchley 10 and Bletchley Total indices, their performance relies heavily on returns of Bitcoin over the period, which was reported to be one of the weaker performing large-cap assets of the week.

At the time of writing, Bitcoin was trading at $8,822 on the cryptocurrency charts, having recorded an insignificant growth of 0.34% over the past 24 hours.

Source: Coinstats

 

 

 

 

 

 

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Ripple news

Cryptocurrency and Blockchain News update 8th October 2019

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Cryptocurrency and Blockchain News update 8th October 2019
Cryptocurrency and Blockchain News update 8th October 2019

Ripple Hosts Blockchain Gathering At USC Berkeley

In recent days, Ripple hosted a gathering of 200 developers, researchers and graduate students at the University of California, Berkeley campus for its first annual University Blockchain Research Initiative conference. This meeting of the minds is Ripple’s major academic conference focused on blockchain and digital assets from a multidisciplinary perspective. At the event, there were representatives from 40 schools across 14 different countries to discuss blockchain and crypto across the business, law, and engineering. 

U.K Crypto Derivatives To Be Banned? 

The World Federation of Exchanges (WFE), which is a global trade association of publicly regulated exchanges, is urging the United Kingdom’s Financial Conduct Authority (FCA) not to restrict cryptocurrency derivatives for retail investors.  The World Federation of Exchanges offered an array of recommendations such as the implementation of standards, consideration of underlying market structures, and a review of the ban — if it is introduced — to ensure consumer choice and access.

South Korean Platform Brings Crypto Payment into 13,500 Stores

Mobile payments app Chai is launching mobile blockchain-based payments at 13,500 CU convenience stores in South Korea. Chai — which operates on the Terra blockchain — will now be accepted as a means of payment at the major convenience store chain. App support will be added at CU by the end of 2019 following a partnership between Chai and convenience store operator BGF Retail, which owns the stores in question.

Sacramento Kings Moving Into Blockchain Space

The Sacramento Kings has teamed up with New Jersey-based blockchain ticketing platform Blockparty to add blockchain-based rewards to its prediction game Call the Shot, The new program will be available in the upcoming 2019–2020 season. During the season, Blockparty will be tracking Kings fans’ activity while they are betting on Call the Shot — and players will be able to accumulate points in a virtual wallet within the Sacramento Kings + Golden 1 Center app. 

U.S. Government Libra Treatment A Threat To National Security

The ex-federal prosecutor and now Andreessen Horowitz partner Katie Haun have argued that the United States blocking Facebook’s Libra digital currency will have national security implications. Andreessen Horowitz is a founding member of the Libra Association. Speaking of the planned cryptocurrency, Haun noted that the social media giant’s project was facing “the same criticisms” and misperceptions that the asset class faces more broadly. The push/pull between Libra and the people who hold legislative power in Washington continues to be an issue.

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Ripple news

Is XRP A Security Or Something Else?

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Is XRP A Security Or Something Else
Is XRP A Security Or Something Else?

The discourse surrounding the securities laws and the treatment of digital assets continues to draw debate among market participants, regulators, and legal practitioners. One of the most high-profile targets in this ongoing debate is XRP, a digital asset issued by Ripple Labs Inc. Despite voluminous public examination, regulators have not reached a consensus on the appropriate treatment for this widely traded digital asset.

Amid vociferous debate and clamoring from market participants for clear, concise and practical guidance from the United States Securities and Exchange Commission (SEC), the commission’s approach to the digital asset space to date has been notably sparse and cautious. However, we are currently enjoying a flurry of recent guidance. In April of this year, the SEC published the “Framework for Investment Contract Analysis of Digital Assets,” drawing heavily on a June 14, 2018, speech by William Hinman (the director of the corporate finance division of the SEC) on digital asset transactions. This suggests some hope that the SEC’s reluctance to embrace and promulgate digital asset guidance may be waning. This historical reluctance is made all the more apparent when compared with the vigor with which the Commodity Futures Trading Commission (CTFC) and the Financial Crimes Enforcement Network (FinCEN) have waded into the digital asset discussion, publishing numerous guides, interpretive letters, and proposed rules. Nevertheless, a pending class-action lawsuit against Ripple has the potential to offer a glimmer of regulatory clarity concerning the fundamental question that continues to disorder the digital asset ecosystem: When is digital asset security?

The Ripple lawsuit is slowly winding its way through the federal court system. Owing largely to procedural jostling, the plaintiffs in the case submitted an amended complaint on Aug. 5, to which Ripple responded on Sept. 19 with a motion to dismiss. 

Among other things, the plaintiffs allege that Ripple has raised hundreds of millions of dollars through the sale of XRP — an asset that the plaintiffs allege is unregistered security — to retail investors in violation of the registration provisions of federal and state securities laws. In addition to claiming that XRP constitutes a security under California law, the plaintiffs in the Ripple case argue that XRP is a security under the SEC’s long-standing “investment contract” analysis promulgated under 1946 case of the SEC v. W.J. Howey Co., 328 U.S. 293 — i.e., the Howey test). Whether any asset (including a digital asset) constitutes an investment contract — and thus a security under the Howey test — is determined by the satisfaction of the following four elements: 1) an investment of money, 2) in a common enterprise, 3) with a reasonable expectation of profits, 4) to be derived from the efforts of others. The plaintiffs, in asserting their case, borrow heavily from the aforementioned SEC framework, quoting from it extensively. 

The SEC framework, mentioned above, suggests, perhaps rather evidently, that “the first prong of the Howey test is typically satisfied in an offer and sale of a digital asset because the digital asset is purchased or otherwise acquired in an exchange for value.” The plaintiffs echo this sentiment and claim that XRP clearly satisfies the first prong of the Howey test. With respect to the second prong of the Howey test, the plaintiffs argue that purchasers of XRP have clearly invested in a “common enterprise,” acknowledging Ripple’s own concession that it “sells XRP to fund its operations and promote the network.”

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