Stunning Altcoin Explanation from Michael Saylor! Ethereum and Ripple both work on security fraud, says Michael Saylor.
Ethereum and Ripple both work on security fraud, says Michael Saylor. Michael Saylor, known as the Bitcoin bull, is famous for not liking other cryptocurrencies such as Ripple (XRP) and Ethereum (ETH). Saylor expressed his opinion on whether these cryptocurrencies should be considered a security or not during his last podcast appearance. Saylor explained that he considers Ripple’s unregistered securities as part of an ongoing legal battle between Ripple Labs and the United States Securities and Exchange Commission (SEC).
The CEO of MicroStrategy said (Michael Saylor):
“It’s obvious. It is a society. The company has many. They do not make their business available to investors by going public; instead, they sell it to the public. There is no single revelation.”
Why Ethereum and Ripple should be considered as securities? He also has the same opinion on Ethereum, the second largest cryptocurrency measured by market capitalization. Saylor says that Ethereum Classic (ETH) is the most unlisted security ever
“It’s owned by a few people – the Ethereum Foundation and ConsenSys … Like FTT, like Solana. “
The CEO of MicroStrategy went on to state that almost all other cryptocurrencies are securities and therefore the SEC should support enforcement:
Bitcoin is an honest commodity, but all other cryptocurrencies are equity tokens created by companies to avoid going public. “They’re also involved in fraud,” Saylor said.
“And especially, Ethereum.” The Bitcoin bull referred to the fact that Ethereum currently has $20 billion ETH tokens locked in a deposit agreement, and it is currently unknown when users can withdraw their money from the agreement. Although the deadline has been repeated several times, it is still not possible to withdraw funds from the ETH 2.0 deposit agreement.
Meanwhile, the acquisition is being planned in the Shanghai Update, which is expected to be the first update released after the merger. The fork is expected to happen in March 2023 at that time.
Michael Saylor questioned that there is a small group of people who decide whether to release or withdraw funds from the deposit agreement and when they will be released. This relates to the previous point.
Isn’t that the definition of an investment contract? If the bank takes $20 billion of your assets, freeze at the window and say “You can’t get your money back, ever, maybe in 2024. We’re not sure. […] We can give you interested in it.” This is the name definition. Suppose a crypto asset is intended to be a commodity. In this case, you cannot rely on a few programmers, companies or CEOs, as the general manager of MicroStrategy did. Finally, he said:
It involves investment in business by a group of people with the intention of benefiting from the work of others. It cannot be considered as a commodity if one can control it. In its ongoing case with the SEC, Ripple is trying to challenge the application of this concept to XRP. Ripple has a number of strong arguments on its side, including the right-of-way statement and joint arguments. Both are among the most promising.