Ripple lawsuit causes long-term price suppression and exposes financial advice loopholes
In a recent tweet, former lawyer and co-founder of Evernode, Scott Chamberlain, expressed his unpopular opinions on decentralized networks and the Ripple case. Chamberlain stated that decentralized networks today are only in name, as profits are centralized and planning is mostly centralized as well. He also criticized the US government for their handling of the Ripple case, calling them incompetent.
Chamberlain went on to explain that he bought into XRP in October of 2017 and it has been his biggest earner. However, he has come to some uncomfortable realizations since then. He believes that XRP holders are primed for fraud due to return expectations, and that Ripple makes the marketplace worse by adding to the negative perception of the community and the projects built here.
Decentralized networks today are only in name as the profits are centralized and most of the planning.
The US gov fumbled the #Ripple case, I see their argument now but they are incompetent.
Thread on decentralization and large actors in this space/🧵
— Fredo Ayala (@xrpwhitefox87) April 6, 2023
One of the major issues that Chamberlain points out is that Ripple is a centralized corporate entity selling a commodity. He explains that the problem is that they paid someone to “create” XRP before the company was even founded. While this is technically a valid argument, Chamberlain believes that it is just PR talk and that everyone knows it is bullshit. He argues that the government’s inability to establish rules and channels for companies to safely launch new tech has led to legal loopholes and new terms like IDO, ICO, and NFT token offerings.
Chamberlain also points out that all of these offerings were and are security offerings. He argues that if you use the proceeds from selling an asset to the public to create the thing you sold them, it is a security exchange. He believes that the lawsuit against Ripple has caused long-term price suppression that has been sold to everyone by influencers in the space. He also criticizes those who provide financial advice without proper disclaimers, leaving many people’s older YouTube videos open for the SEC’s interns review.
Chamberlain also criticizes Ripple’s marketing, stating that almost all of it is seen as adoption for XRP. He argues that this is problematic because it creates a bunch of eyes on a centralized location for price. In order to avoid this problem, Ripple has set up a number of entities that are slowly being spun off into being independent. However, Chamberlain believes that this has led to an unhealthy ecosystem that is dominated by Ripple in an unhealthy way.
Chamberlain’s opinions may be unpopular, but they do raise some valid points about the problems with centralized entities in the decentralized network space. It is important to have uncomfortable conversations and address these issues in order to improve the industry as a whole. While some may disagree with Chamberlain’s opinions, his willingness to speak out and start a conversation should be commended.
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