Flare v XRP - Which Is Better? SEC - Coinbase Lawsuit
Listen to the show.
Watch the show
Show Summary
- XRP as a Security: The SEC believes XRP is a security, but the judge has ruled against it. Jeremy Hogan and John Deaton discuss the matter, citing Section Four exemptions and the burden of proof on token holders.
- Ripple Case Analysis: Bill Morgan analyzes the Ripple case and finds no error in Judge Torres' approach to evaluating transactions based on their factual setting. He cites differences between institutional buyers and programmatic sales buyers.
- Coinbase Case: John Deaton comments on Coinbase's motion for judgment, requesting the dismissal of charges against them. He cites the Major Questions Doctrine and argues that secondary market spot exchanges do not carry rights or obligations of buyer and seller discharge.
- SEC scrutiny over going public: SEC oversees companies getting ready to release securities, scrutinizing every aspect of the company.
- Undermining XRP in the US market: Powers continuously try to undermine XRP, even dismantling its technology.
- Flare Network's monumental project: Flare aims to bring interoperability by tying in different chains like Ethereum and Doge.
- Songbird and Flare airdrop controversy: The airdrop upset the community, causing turmoil and disrupting the entire community.
- Ripple's Cross-Border Transactions: Ripple has been meaningfully prevented in their ability to develop the market due to regulatory uncertainty, but they have clarity now. Ripple has signed contracts all over the world and has done some amazing things in other parts of the world.
- XRP Ledger: XRP Ledger is still new and current, recent development, but there's a need for more projects utilizing XRP Ledger, utilizing the technology, utilizing the decks, utilizing everything that's built within the XRP Ledger.
- Ripple court ruling impact: Discuss the impact of the recent court ruling on XRP and how it will affect the project.
- Hugo's delivery: Critiquing Hugo's delivery of his opinion on XRP and how it could have been phrased better.
- Flare project: Discuss the potential of the Flare project and its long-term value proposition.
- Twitter communication: Highlighting the dangers of communicating through Twitter and how tone can be misinterpreted.
- XRP price optimism: Acknowledging the optimism surrounding XRP's price, but emphasizing that progress will take time.
- Clickbait headlines: Criticizing clickbait headlines in crypto and advocating for more realistic expectations.
- Flare community upset with price decrease: Many people are upset with Flare's price as it has decreased considerably, and the motions involved only add flames to the fire.
- Animosity within the XRP community: The airdrop created a lot of animosity within the space, and people felt there were certain promises made that weren't delivered exactly as they thought.
- Flare token value: A flare token is considered worthless by some, with drops being insignificant.
Links to Articles We Discuss
The SEC absolutely believes that XRP itself is a security. And Judge Torres clearly repudiated that belief in her ruling.
— Jeremy Hogan (@attorneyjeremy1) August 6, 2023
Here's the transcript from the 2021 hearing. The SEC lawyer argues that XRP remains a security, but that there's an exemption for individuals to sell. https://t.co/cd3KQz6dVn pic.twitter.com/gNR8vOw567
“The SEC does not and cannot allege that transactions in
— John E Deaton (@JohnEDeaton1) August 4, 2023
the 12 tokens identified in the Complaint that take place on Coinbase's secondary market spot
exchange, or on other secondary market exchanges through Coinbase Prime, carry such rights.
They are asset sales, with the… https://t.co/rAhjzeCBng
Excellent 🧵 explaining that Torres didn’t make a distinction between the different sales out of thin air. She took each type of sale CHOSEN and DEFINED by the SEC and applied the Howey test. I’m willing to bet significant funds she doesn’t get reversed on appeal. https://t.co/5jAfwusrng
— John E Deaton (@JohnEDeaton1) August 6, 2023
I have always assumed that XRP would sell off hard after the case ended. This is because the primary (but not only) usecase for XRP is (and has always been) cross border transactions and the primary force behind developing this market is still Ripple. Since late 2020, Ripple have…
— Hugo Philion ☀️ (@HugoPhilion) August 5, 2023
No of course not but convincing people to do something a new way (eg cross border payments) when there is regulatory uncertainty is practically impossible.
— Hugo Philion ☀️ (@HugoPhilion) August 5, 2023
"This is because the primary (but not only) usecase for XRP is (and has always been) cross border transactions" Who says that? Because even Ripple didn't start with this use case, the focus was always on DeFi and DEX and the activity of other use cases is and was aways bigger.
— Panos 🔺 {X} 🪝 (@panosmek) August 5, 2023
How can it be primary though when it has never been the use case with the biggest activity and usage on XRPL? I would argue due to the big misinformation over the years it's the only reason most people focus on Ripple.
— Panos 🔺 {X} 🪝 (@panosmek) August 5, 2023
Because a large section of the community seem to be confused as to why “the switch has not been flipped” and I thought I’d give my 2 sats.
— Hugo Philion ☀️ (@HugoPhilion) August 5, 2023
Nope, never said that. I'm a large flr holder and advocate, I'm just letting you know the sentiment from the xrp community
— {𝕏}🪝I ₚᵣ૦𝖇ₐ𝖇ɩү 𝐊𝘯𝜊⒲ 𝘯𝜊𝙩ꚕῐ𝘯ᶢ 🤡🙃 (@iMustBeNewLOL) August 5, 2023
Me: x hasn’t done y yet because of my opinion (z). But x will do great eventually, just give it time. Also loads of other community driven stuff is happening around x which is exciting.
— Hugo Philion ☀️ (@HugoPhilion) August 5, 2023
Normal people: Cool. Maybe I agree with you, maybe I don’t.
A minority of people: You…
I believe you meant well but your post came off a bit tone deaf. I think we both agree short-term price movements are a poor way to judge a project. And the price action of FLR tokens is not representative of the progress and long term value prop of Flare.
— Neil Hartner (@illneil) August 6, 2023
Thank God people own Flare token which is now almost worthless 😂
— CryptoBull (@CryptoBull2020) August 5, 2023
How about Flare’s sell off every month for the next 31 airdrops….. push-lease…… Joel Katz even said how dumb this idea was….
— Lady Crypto-Lot (@cryptopumpalot) August 5, 2023
I am waiting… waiting… and waiting to understand the use case for Flare after the SGB/FLR crash… after the pivot to staking… all the while no revenue, no customers and no meaningful business model.
— MaxEntropy (@MaxEntropyy) August 5, 2023
Jaded.
Please stop posting about XRP bro, instead focus on FLR and get some use cases other than wrapping and delegating.
— Bucharest Mafia 🇷🇴 🇪🇺 (@BucharestMafia) August 5, 2023
Hugo lecturing us on “being behind”.
— Mr. Intuitive 🏴☠️ Trumors Only. (@BlackberryXRP) August 5, 2023
I’d bet dimes to donuts Ripple isn’t behind. https://t.co/beGjDu0oUN
To those saying the SEC doesn't think a token itself is a security... this is false. See the SEC's own words in the complaint against us (which the Judge ultimately rejected) pic.twitter.com/RIoAbs1pM5
— Stuart Alderoty (@s_alderoty) August 5, 2023
The technology that @FlareNetworks will provide will allow users to execute 1 #FLR transaction and be seamlessly liquidity mining on another L1.
— ᙢinus ᙡells (@MinusWells) August 6, 2023
This will allow the best #Defi from multiple L1s to accessible through 1 network, with only needing to execute 1 txn & owning 1 asset… pic.twitter.com/bK6YjlCinz
I believe the #Flare technology will prove to be valuable, for example, #StateConnectors are more powerful and accurate than any legacy oracle
— ᙢinus ᙡells (@MinusWells) August 6, 2023
🇦🇺 Australia is going “cash free” 🚨
— Bitcoin News (@BitcoinNewsCom) August 5, 2023
The government has already removed $1 billion in cash from circulation this year 😮
Paving the way for a #CBDC 👀
pic.twitter.com/KAGlLWfTpI