- The continuing legal struggle between the SEC and Ripple centers on whether XRP is a cryptocurrency or not. The commission started the case in 2020, and it was recently extended to November 15.
- While the contentious tweet has since been removed, it was long enough to get the crypto Twitter community discussing each of the game’s assets. XRP was the impostor, according to CMC, since it lacks the characteristics of a true cryptocurrency because it is administered and controlled by a central authority.
- The regulator claims that XRP is unregistered security, which Ripple refutes. The commission claims that XRP is a security because of its centralization, as opposed to digital assets like Bitcoin, which it regards to be decentralized. Ripple, on the other hand, believes that XRP, despite its controlled nature, qualifies as a cryptocurrency.
CoinMarketCap’s tweet, according to Ripple’s community, shows CoinMarketCap’s bias against XRP. The market data aggregator CoinMarketCap (CMC) was at the heart of a controversy today after tweeting that Ripple’s XRP was not a true cryptocurrency. CMC has posted a screenshot of a game in which participants had to discover the impostor among digital assets such as Bitcoin, BNB, Ethereum, XRP, and others.
The XRP Crowd Is Furious CoinMarketCap
While the contentious tweet has since been removed, it was long enough to get the crypto Twitter community discussing each of the game’s assets. XRP was the impostor, according to CMC, since it lacks the characteristics of a true cryptocurrency because it is administered and controlled by a central authority. All the other coins in this are decentralized and are effectively people’s crypto, it stated.
Many XRP supporters were outraged by the announcement, claiming that the aggregator was simply demonstrating its bias against the cryptocurrency. The site removed XRP’s volume numbers from Korean marketplaces without warning in early ’18, according to one user. They additionally blamed CMC for spreading misleading data with ulterior thought processes.
Another person accused CoinMarketCap of prejudice for publishing incorrect information regarding XRP on its website for more than two years. The fact that Binance Holdings owns CoinMarketCap has prompted some to question whether BNB is truly decentralized.
However, others in the crypto world still believe that CMC was correct. This is not far from the truth, according to them, citing the ongoing dispute between Ripple and the Securities and Exchange Commission (SEC) over whether the token is a cryptocurrency or unregistered security. CoinMarketCap has since apologized, stating that the deleted tweet was a mistake. According to the aggregator, it is unconcerned about the qualities of any coin.
Is XRP Considered A Virtual Currency
A new team member wasn’t familiar enough with our rules on commenting on other projects, the tweet continued, but now they are! We want to be objective and let the algorithms speak for themselves. The continuing legal struggle between the SEC and Ripple centers on whether XRP is a cryptocurrency or not. The commission started the case in 2020, and it was recently extended to November 15.
According to the Howey Test, the regulator claims that XRP is unregistered security, which Ripple refutes. The commission claims that XRP is a security because of its centralization, as opposed to digital assets like Bitcoin, which it regards to be decentralized. Ripple, on the other hand, believes that XRP, despite its controlled nature, qualifies as a cryptocurrency. In a recent remark, the CEO, Brad Garlinghouse, stated that the only country on the earth that believes XRP is a security is the United States.
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Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/04/30/ripples-xrp-is-categorized-as-just-a-impostor-cryptocurrency-by-coinmarketcap/