Ethereum And Ripple Are Committing Securities Fraud – Michael Saylor
American Entrepreneur and business executive Michael Saylor has said that he does not believe investing in Ethereum and Ripple is reasonable. He believes that investing in any Cryptocurrency other than Bitcoin is pointless.
Michael Saylor was heard in a podcast saying altcoins should be considered securities. While referring to the problem between America’s leading financial regulator and Ripple Labs, he said he is convinced that Ripple’s XRP is an unregistered security.
The Executive chairman and founder of Microstrategy added that “it’s clear that Ripple owners sell their digital assets to the general public, but since there are no disclosures, he can say that they never took the company public.
Why Does Saylor Feel That Ethereum And Ripple Are Securities?
The Microstrategy founder also said that Ethereum is an unrecognized security, just like Ripple. But, according to him, it is dominated by a few influential individuals, such as ConsenSys and its Ethereum Foundation.
He believes that Ethereum is not any better than Solana and FTT. The American online education provider explained that almost every altcoin is security and should be governed by SEC rules.
He said it would be for the greater good if the US financial watchdog could permanently ban all altcoins, calling them “unethical.” He claimed that Bitcoin is ethical while other altcoins, including Ethereum, are equity tokens circulated to the public by companies to avoid an IPO.
Saylor added that altcoin issuing companies are committing security fraud. For example, the Bitcoin advocate claimed that Ethereum stakers have over $20B worth of ETH tokens confined in deposit contracts in 2022.
He said Ethereum hadn’t given any specific time for possible withdrawals. Even with postponing the withdrawal timeline, several Bitcoin enthusiasts have reported that it’s still impossible to withdraw from ETH 2.0 deposit contracts.
According to reports, the network has scheduled redemptions for its Shanghai update. The update changes the network’s basic rules and will occur by March 2023.
Michael Saylor claims it is unethical that a small group should have a monopoly of control over Ethereum and determine when redemptions from deposits will be allowed.
He argued that “if a financial institution prevents investors from withdrawing their assets, they will probably give interests on these staked holdings. Then, that investment is security.”
The CEO said it’s foolhardy to rely on a few engineers, a CEO, and a company to make profits for you if the crypto asset is a commodity. If one person can decide for an entire financial institution, their digital assets cannot be considered a commodity.
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