The co-founder of MicroStrategy commented on Ripple’s litigation with the US Securities and Exchange Commission (SEC), calling XRP an unregistered security, and ether an unethical cryptocurrency.
Michael Saylor called the lawsuit between the crypto asset issuer and officials “the test of the century for the cryptocurrency industry.” However, he agrees with the position of the American regulator, who claims that XRP is an investment contract. Saylor explained that Ripple holds the majority of XRP coins in escrow and sells them to the general public. At the same time, Ripple does not disclose details about its XRP holdings, given that the company is not public.
When asked why the SEC targeted XRP and not another coin, Saylor suggested that the agency could start legal action against Ethereum as well. According to the co-founder of MicroStrategy, it would be better for the whole world if the SEC shut down Ripple and Ethereum, because their cryptocurrencies, in his words, are unethical. Sailor suggested that investors who staked their assets on Ethereum 2.0 might not get their money back.
“Imagine that a bank took $20 billion worth of your assets, froze it and did not say when you could return it. Maybe it will happen in 2024, maybe not. The bank can give you interest, take it for itself, or cut it. Is this safety? This is an investment of money in an ordinary enterprise, the profit of which depends on the efforts of others, ”Saylor said.
For a crypto asset to become a commodity, it should not depend on the developers of the company or its CEO, the businessman argues. Users wait for programmers to write code so they can get their funds back, then wait for details on the monetary policies of these crypto companies. That policy has changed several times over the years, Sailor says.
The head of MicroStrategy has always been considered a bitcoin maximalist, supporting this particular cryptocurrency, despite any market conditions. In August, he stated that even during the crisis, bitcoin outperformed all assets in the stock market.
Source: Bits
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