a lawyer in his office showing a document with the text lawsuit written in it
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What the $XRP lawsuit is saying to new projects: 1.) Company that starts a project cannot be the majority holder of the coin (Keep 👀s on projects with large pre-mines) 2.) Coins need to have a "fair launch". 3.) If your coins is POW and has no pre-mine it's not a security pic.twitter.com/7L6aINXU5i
Project founders, teams, and the companies themselves cannot be the primary holder of the coins issued. Initial distribution at launch must be fair to ensure the asset is well-decentralized.
Proof-of-work coins without a pre-mine, are largely expected to pass the securities sniff-test, and pass off as a commodity instead.
Sadly, the crypto industry has responded to the Ripple lawsuit with cheer rather than a challenge. How regulators handle even a case against a disliked company and demonized executive team, could have an impact on the rest of the space for years to come.
5/ We're "in this together" to draw lines of regulatory demarcation.
XRP as a "security" further hurts the U.S. businesses while global comps will continue to make these markets.
XRP as a security also means other assets will meet the same fate. At least Ripple has $ to fight.
It also again, appears to put American investors at an extreme disadvantage, as the SEC’s jurisdiction would only prevent US citizens from owning XRP, allowing the rest of the global population to gobble up share.
In the rare, off chance that banks use XRP someday, only US investors will be left behind due to an unregistered securities lawsuit being issued in 2020 in relation to a coin created in 2012. The regulatory entity had eight years of adoption to step in, and at this point, the impact could cause more harm than good.