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Make no mistake. They're going to make an example of Ripple. This is going to be horrible for them and a warning to anyone trying to run a similar Ponzi scheme.
by asim 6y ago
Make no mistake. They're going to make an example of Ripple. This is going to be horrible for them and a warning to anyone trying to run a similar Ponzi scheme. You can't centralise, hype and then cash out on vaporware without there being consequences. XRP held zero value at the time the founder cashed out and they've been trying to make their consulting business work ever since. Dare I say XRP goes to zero. Watch this space.
- artellectual 6y agoActually Ripple is not Vaporware. I work for an MTO and we use ripple XCurrent product. XRP enables MTOs to send / receive without having to use USD as an intermediary currency. This reduces costs on money transfer and also enables money transfer even when US banks are on holiday. So I can say there is real value in the network Ripple is building and also XRP itself being used as the tool for cross border remittance. As far as I can see they're delivering on their promises.
- zionic 6y agoWhy not use ether/smart contracts? Seems way better than ripple for this use case.
- artellectual 6y agoBecause who do you contact for support when something goes wrong? The problem cryptocurrency industry doesn't understand is when you work in finance you are heavily regulated. You cannot just work with "decentralized" systems and call it a day. Every action you do is answerable, everything is questioned and scrutinized. Having someone like Ripple and XCurrent as an intermediate as a regulated company helps solve a lot of problems. Since Ripple itself is regulated it's easy to justify to regulators. Ripple is also answerable when transactions delay happens. For Etherereum / Smartcontracts who do you contact for support when transactions SLAs aren't being met?
- zapdrive 6y agoBitcoin core's lightning should be the next on the chopping block of SEC.
- throw1234651234 6y agoWhy? People pay tax on every sale in the US, lightning or not.
- hanniabu 6y agoThe nodes violate money transmittal laws
- lifty 6y agoWhat is the core argument for this position?
- SAI_Peregrinus 6y agoIf I were to guess: The SEC considers Bitcoin to be a currency. Intermediaries handling currency transactions are subject to "Know Your Customer" laws, and need to get various identifying information from the parties whose currency they're transmitting. Lightning network nodes don't collect such information. Therefore, the Lightning network node operators are in violation of US law. I'm no expert though, there may be other SEC rules that are more relevant.
- toomim 6y agoOh wow, I think you're right.
- ric2b 6y agoThe lightning network is a decentralized protocol for transferring BTC, it's not even remotely comparable.
- zapdrive 6y ago