XRP, Cardano’s ADA, Solana [SOL], and others have “always” been securities, while Bitcoin [BTC], Litecoin [LTC], Dogecoin [DOGE], and XChange Coin [XCH], are not securities, Gene Hoffman, COO of the Chia network stated.
The tweet comes at a time when regulators such as the U.S. Securities and Exchange Commission [SEC] attempt to bring cryptocurrencies under the ambit of securities.
It was Hoffman who previously predicted that SEC will emerge as the winner in the long-drawn battle against the blockchain payment firm Ripple.
“The only outcome is that a federal judge will rule that Ripple’s sales of XRP made XRP a security,” he tweeted on Dec. 7.
Federal courts, per the formerly public company CEO, are wary enough to realize that the majority of XRP buyers did so with the hope that “the number would go up.”
Hence, according to him, the arguments of Ripple and its supporters about the cryptocurrency’s alleged utility have little substance.
Hoffman, who has extensive experience working with the SEC has pointed to the fact that the top agency has not lost a Section 5 case in decades. Hoffman also noted that there is not much of a difference between XRP and LBRY Credits [LBC] tokens.
As reported by TronWeekly, a decentralized digital content and payment network LBRY lost against the SEC in November, with the court ruling that the start-up offered LBC tokens as unregistered securities.
Furthermore, Bill Hinman, the former director of the SEC’s division of corporation finance, notified the Ripple leadership in 2019 that their XRP distributions were considered to be unlawful.
XRP lawsuit: “Ripple Have Misleaded Investors”- Gene Hoffman
While Hoffman acknowledged that the SEC’s treatment of Hinman’s controversial Ethereum speech from 2018 was “a fiasco,” he, however, continue to assert that it has nothing to do with the current situation.
The serial entrepreneur also accused Ripple of misleading a lot of people in the cryptocurrency industry about the actual situation.
“It is unfortunate that so many people at Ripple were deceived about this matter”, he wrote.
Only “quite a few” of the top 100 cryptocurrency exchanges, Hoffman claimed, are not registered as securities in the US. Nearly two years ago, the SEC started its complaint against Ripple.
According to reports, the well-known blockchain company is offering XRP tokens for sale as unregistered securities.