Cryptocurrency personality, and alleged Bitcoin creator operating under the pseudonym Satoshi Nakamoto, Craig Wright, has taken to Twitter to make his point clear, that he believes Ripple’s XRP is a security, and not a utility token.
The tweet read:
“For XRP not to be a security, it will need to be a real utility offer. IF something is exchanged with expectations of profit, it is not a utility token. XRP is a tradable good that is sold under the expectation of profit. That in itself makes it a security.”
The token, which is a experiencing a windfall amidst a crumbling market, has been attacked by Wright as he claimed that it was operating an “illegal unregistered security platform to take down”. Wright was making the correlation with the SEC’s report on ICOs. He believes that Ripple’s token, which recently surpassed Ethereum for second place in terms of market cap, will be the next under investigation by the US’s SEC. Wright’s outlook is that XRP will be labelled a security.
Amongst the tweets and the responses that have gone back and forth between users, one had pointed out that Ripple’s label was not for Wright to decide, and that the tweet was to spur the community into a selling the digital asset. Wright’s response was concise claiming that he would not get involved with XRP and that the asset already within the description of a security.
His tweet reads out:
“No, actually, it is not. I would not touch XRP, sell or buy nor will I ever. The definition of a security is already defined by the courts. XRP is squarely in that definition.”
Wright went on to explain how he felt that XRP was a scam to bilk the naive into a get-rich-quick scheme:
“XRP is the biggest scam in the space. I look forward to when this sham offer is revoked. This idea of issuing non-registered securities and selling to noobs who want to get rich without working is nothing new and neither will be the take-down.”