- “Ripple attorneys will have their hands full explaining the statements of Ripple executives,” claims Larry Cermak
Larry Cermak, economy/law analyst and author at theblockcrypto.com, launched an interesting Twitter thread today regarding Ripple, XRP, and the currency’s status as a security.
He first went and determined what actually constitutes a security. The question “Has the promoter raised an amount of funds in excess of what may be needed to establish a functional network?” is one that needs to be answered to determine if the token is a security, according to SEC member Hinman.
Citing this as the burning question hanging above XRP’s head, Cermak dove deep into the statements of Ripple’s top dogs and discovered some worrying trends.
Besides acknowledging that Ripple management said multiple times how XRP Ledger is already functional and decentralized, he noted that Ripple Labs still remains in possession of 55 billion XRP which they intend to sell to generate further revenue. Chris Larsen and David Schwartz gave the “best” quotes describing Ripple’s intention to use their stash of XRP to profit in the future, citing Schwartz and his “After all, the reason we’re doing this is to increase demand for XRP to increase the value we can extract from our stash of XRP” as the most damning piece of evidence that XRP is in fact a security. Cermak concluded his Twitter thread with the following:
“As demonstrated by their own comments, Ripple is clearly incentivized to increase the value of XRP and therefore XRP holders’ investments. The long controversy will likely be decided in federal court down the line. In any case, Ripple’s attorneys will have their hands full in explaining the historical and recent statements of Ripple executives with respect to XRP and Ripple’s relationship to the cryptocurrency.”
You can read the full thread, along with an article that goes deeper into the quotes and issues mentioned,
1/ This week I decided to look at Ripple and whether XRP could qualify as a security based on what Ripple executives have said publicly in the past.https://t.co/ECrvNKdugH
— Larry Cermak (@lawmaster) December 6, 2018
- HTC Exodus phone starts shipping
HTC recently announced they’ll be moving into the cryptocurrency waters with their new mobile phone, HTC Exodus (marked as HTC Exodus 1). This blockchain-powered phone lets its owners trade cryptocurrencies, pay for various services with crypto and run dApps on it.
The phone was envisioned and designed by Phil Chen, HTC’s “Decentralized Chief Officer,” a developer who previously worked on the HTC Vive VR headset. This first generation of Exodus immediately impresses with its features:
- Display: 6-inch IPS LCD display, 1440×3120 resolution
- Durability: IP68 dustproof and waterproof
- Chipset: Qualcomm Snapdragon 845
- OS: Android 8.1
- Storage and Memory: 6GB RAM, 128GB internal storage (non-expandable)
- Battery: 3500 mAh battery, USB type-C charging, support for fast charging
- Camera: 16-MP and 12-MP main camera, dual 8-MP selfie camera
- Connectivity: 4G LTE, Bluetooth 5.0, Wi-Fi 802.11 a/b/g/n/ac, dual-band, WiFi Direct, hotspot
One of the flagship applications that’ll be pre-installed on the phone is called the Zion wallet. This wallet has a security system detached from the Android software (also called the “TrustZone Secure Enclave”) and lets its owners utilize the so-called Social Key Recovery function in case something happens to their phone. Every Exodus device will serve as a node, and every user will own their identity and their data pushing for a more decentralized system.
Zion will support Bitcoin and Ethereum, as well as Litecoin and several popular ERC-20 tokens on its launch day. Interestingly enough, Exodus can only be purchased using cryptocurrency.
Exodus 1 can currently be purchased for the price of 0.15 BTC/4.78 ETH/19.84 LTC (amounts to just above 500 USD). This device will target developed markets as Chen and HTC plan to release a more affordable phone for underbanked people from poorer countries of the world.
- Binance lists Republic Protocol (REN)
Popular Chinese/Maltese exchange Binance has added Republic Protocol to its trading platform.
Republic Protocol operates as an open-source decentralized dark pool exchange. This means that individuals can trade in any size of volume without having details of their transactions revealed. The project looks to focus on larger orders, thus being more suitable to institutional investors.
It facilitates cross-chain atomic trades on a hidden order book over the Ethereum and Bitcoin networks. Miners within the protocol run equation solving nodes to earn REN tokens and match orders without revealing the underlying trade until execution.
As such, the Republic Protocol system is capable of executing large block orders for ERC20, Ethereum and Bitcoin pairs; the orders are executed with minimal price slippage and maximum protection from front-running.
“Republic Protocol delivers mathematically-proven security and privacy until execution to dark pools, providing a system for investors and traders to exchange significant amounts of cryptographic assets,” Binance explains.
- Factom to be used by a Chinese online video performance verification company
Factom has been one of the hottest cryptocurrencies on the market lately, managing to appreciate from $4 to $16 in the past month or so. This 300% growth has surprised many but some investors knew that this currency has a couple of aces up its sleeve.
With Melinda and Bill Gates Foundation and Draper Associates supporting it, Factom’s latest rise isn’t exactly that surprising. Their latest partnership from China will likely contribute to added growth in the future.
The Board of AIM-traded FastForward Innovations Limited Company announced that its investee company Yooya will be adopting the Factom Harmony platform as their blockchain solution delivered through Wancloud, Factom’s Chinese re-seller.
Yooya is a Chinese company that manages business-to-business online video networks; it manages and tracks video content on over 45 Chinese online video distribution platforms, including Alibaba’s Youku, Baidu’s iQiyi, and Tencent Video.
Yoouya will use the Harmony platform to deliver both public and private blockchain-based online video content experiences to its customers.
Interestingly enough, FastForward owns a stake in both of these companies as they have a 2.06% equity interest in Factom and a 15% one in Yooya.
Cryptocurrency in Australia: types and regulations
Cryptocurrencies have become way more accessible across the world. While most governments want to capitalize an all the benefits of cryptocurrencies and blockchain there are security concerns that haven’t been fully solved yet. While the decentralized and unregulated nature of cryptocurrencies is what is most appealing about the technology when it comes to the statewide adoption and mainstream access of this sort some regulations usually do apply.
Australia has been slowly establishing itself as one of the more crypto-friendly countries where these currencies remain largely not regulated. There are the basics of cryptocurrencies in Australian, based on an opinion of Australian financial expert. Given the fact that cryptocurrency is becoming more and more popular, Australian authorities have been trying to find the middle ground with their approach to cryptocurrencies.
Available cryptocurrencies in Australia
Bitcoin – the most famous and widely adopted cryptocurrency. Its users use computer-intensive software to validate transactions that occur through the network and earn new bitcoins in the process. This particular cryptocurrency has experienced a lot of highs and lows but still remains the most widely recognized cryptocurrency. However, at the same time, Australia has its own important legislative features of the use and regulation of Bitcoin.
Ethereum. Probably the second most well-known cryptocurrency is Ethereum. While most cryptocurrencies are wildly damaging for the environment Ethereum team is one of the few in the crypto world that has been actively working on decreasing these effects and work towards making crypto mining less energy costly.
Litecoin is an electronic payment system like bitcoin, but in the Litecoin’s case the transactions are processed faster and they are generally larger quantities of Litecoin compared to bitcoin, with some crypto users perceiving Litecoin and the “lighter” version of bitcoin, sort of like the backup.
Ripple – this one is a protocol that complements Bitcoin. Ripple allows real-time transfers in any currency. In the Ripple database, the users can store and transfer value in any currency.
In April of 2019, Australia introduced the new regulations according to which, Digital currency exchanges with a business operation located in Australia must register with AUSTRAC and meet the Government’s AML/CTF (Anti-Money Laundering/Counter-Terrorism Financing) compliance and reporting obligations.
Australia has faced quite a few crypto crimes and since the government wants to incorporate this technology and use it to enhance the day to day lives of its citizens the officials have to take necessary precautions to prevent crime as much as possible. Currently, there are thee licensed exchanges, BTC Markets, Blockbid, and Independent Reserve.
Australia also has a taxation policy when it comes to cryptocurrency. But if your digital currency is less than $10000 and you’re using it for personal services then you won’t be taxed. In all other cases, you will have to pay tax. If you hold digital currencies as investments then you will have to pay tax on any profits when you sell them. If you use cryptocurrencies to pay for business expenses then the transactions will be subjected to goods and services tax.
For those mining bitcoin, any profits that you make will be included in your assessable income and if you are exchanging cryptocurrencies you will pay income tax on the profits and the transactions will be subject to GST. So taxations are definitely somewhat strict and will probably not change in the near future.
So if you’re considering getting into cryptocurrency its good to know ahead of time what to expect. But Australia is still one of the most crypto-friendly countries out there, that is setting an example for those who wish to engage more with this technology since the response from the consumers has been great and there is so much potential beyond cryptocurrencies in the blockchain technology.
What people like any cryptocurrency can still be maintained with the carefully crafted system of regulations that would make the process safer for everyone involved without imposing crazy restrictions that would take away all the perks that this technology offers. While cryptocurrencies have proven to be very convenient, they have also caused a lot of trouble.
Some experts say that this is largely due to the fact that the industry is still pretty new. Within the following years, we will probably see a major improvement in the security systems concerning blockchain that will make it easy for countries to encourage the use of cryptocurrencies with more confidence while allowing for the first time transparency and decentralization that would change the financial systems and many other industries for the better.
RIPPLE’S NETWORK OF BANKS AND FINANCIAL INSTITUTIONS WELCOMES A NEW MEMBER
2019 is about to come to an end, and the crypto space is looking pretty good. Despite the high volatility that has been plaguing the crypto market throughout the year, the projects behind the coins have been moving on with various achievements and developments.
Interest in crypto has also been on the rise as well, regardless of the prices.
Ripple and XRP are two entitites that have seen massive success during 2019, with he company being able to seal a lot of meaningful partnerships, while at the same time promoting the XRP ecosystem and boosting the adoption of its products.
In terms of prices, XRP has been lagging this year, and at the moment of writing this article, the coin is trading in the red as well.
Now, Ripple marks another success.
Ripple welcomes a new member in the networks of banks and financial institutions
Now, 3S Money Club, a London-based digital B2B merchant banking platform, joins Ripple’s network of banks and financial institutions.
The company’s CEO, Ivan Zhiznevskiy, announced this onLinkedIn.
“By joining Ripple’s growing, global network financial institutions can process payments worldwide instantly, reliably and cost-effectively,” he began.
He continued and said: “It allows network members to exchange instant messages such as live quotes and payment instructions over one standardized and validated protocol. In contrast, 3SMC is now connected to four banking partners through APIs.”
According to the latest info coming from the online publication the Daily Hodl, he did not reveal so far whether he also plans on using On-Demand Liquidity.
XRP’s adoption sees another boost
XRP witnessed increased adoption throughout 2019, and Ripple made sure to boost the complete XRP ecosystem as well.
In other news, it’s been revealed not too long ago that XRP is getting ready to penetrate a $140 billion industry.
The Ripple-backed gaming company Forte says it plans to use XRP and the Interledger Protocol to build games based on the blockchain tech and leverage XRP as a settlement asset.
XRP’s Genesis Block Still Has No Record
Many are unaware of the fact that Ripple’s XRP effectively has no genesis block on record. Due to a bug, ledgers numbered one through 32569 were lost and have not been recovered.
Genesis blocks are considered the most important part of a blockchain’s history. However, the third-largest cryptocurrency apparently does not have this early period on record. The first week of ledger history for XRP is completely missing.
It’s been known for years now that XRP suffered a mishap in its early weeks of creation. Currently, ledger #32570 is the earliest point on XRP’s blockchain which is actually recorded and saved. All that preceded this point has been lost and, it seems, will never be retrieved, including the genesis block.
As archived forums show, the mishap happened via a “server bug,” which led to lost history. This makes tracing back to the genesis block impossible. Writing in 2013, there was some hope, however, that it could be recovered. Thus far, these efforts have failed. As one user brings up that this effectively means “we can’t see the crucial first few hundred transactions!”
This is especially prescient given that the early days of Ripple were so chaotic. Jed McCaleb founded the project but, due to disagreements, quit. He went on to create Stellar (XLM), but he continues to get his lavish share of XRP.
Is XRP’s Genesis Block Gone Forever?
Since 2013, nobody has been able to recreate the first week of XRP’s ledger. The bug meant that “ledger headers” were not properly saved and recreating them has proved impossible. The fact was brought up recently by Michael del Castillo (@DelRayMan), who was looking for Ripple’s genesis block but was shocked to find nothing. He was looking for the transaction that created the 1B XRP now in existence.
This gaping hole in Ripple’s blockchain effectively obscures the early and most fundamental days of Ripple’s history — the first week. A blockchain without a genesis block remains an anomaly in the entire industry.