Here is an over simplified version of events for Ripple (XRP)
- Ripple claims, it is a utility token, not a security subject to SEC law
- Ripple works with banks, lets banks send money to each other via RippleNET in USD.
- Banks have the option to transact via RippleNet via XRP, I assume virtually none does this.
However...
- All of the ripple was minted by the company ripple.
- All of the ripple was sold to investors (like stock)
- The main use for ripple, is selling it to investors, and traders buying & selling it
SEC says, Ripple is a security, and in violation of SEC law. Exchanges are starting to delist it, 50%+ decrease in 24 hours. Spicy!
Okay how about bitcoin... (im getting there...)
All other cryptos (besides bitcoin) are in a similar position.... They engineered:
- how their companies were formed
- how they raised money
- how their coins were minted
- how their coins would be released based on "usage milestones"
but the problem remains the overwhelming use case for crypto currencies are
- mint the coins
- sell them to investors
- market the coin
- list it on exchanges
- sell more coins
Virtually no cryptocurrencies have real use cases, and when they have use cases, they are not economically viable. Chainlink for example charges $10-$100 per query. Most companies in the data business sell data points by the thousand, and for pennies!
I predict.
- XRP will get delisted from coinbase
- XRP will publicize how little cryptocurrencies are actually being used, like a strip club trying to call itself a restaurant, or a AR-15 pistol trying to be catgorized as a pistol
- Shitcoins (Litcoin, Cardano, Polkadot, EOS, NEM, TRX) will be targeted
- StableCoins will be targeted and be forced to apply for banking licenses, collect deposits, and comply with FDIC which is literally fucking impossible.
Whats ethereum without defi and stable coins?
Whats bitcoin without a thriving ecosystem and crazy regulation?
full disclosure: I made alot of money off crypto, I only hold btc now, and am not selling, do not sell your crypto because of this post, do your own research.
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