Craig S. Wright, the self-proclaimed Satoshi Nakamoto who backed the Bitcoin Cash SV protocol in the recent Bitcoin Cash hard fork, has recently turned his attention to Ethereum’s ether and the XRP token, the number two and three cryptos by market cap.
In a recent tweet, Wright claimed that “any use-case for ETH no longer exists,” while referring to recent headlines that revealed the US Securities and Exchange Commission (SEC) brought over enforcement actions involving cryptos and initial coin offerings (ICOs).
At the bottom of the tweet, he claimed XRP was the “next target,” and an “illegal unregistered security platform to take down.”
Any use-case for ETH no longer exists following the confirmation by the @SEC_News on ICOs. All as I have been trying to say for years.— Dr Craig S Wright (@ProfFaustus) November 17, 2018
Next target, XRP. Another illegal unregistered security platform to take down.
When confronted by commenters on various experts – including some at the SEC – claiming the cryptocurrency wouldn’t be considered a security based on the Howey Test, Wright responded the test is a “definite,” and that “XRP is a security.”
Notably, earlier this year, an investor filed a securities class action lawsuit against Ripple over an alleged breach of US federal and state security laws. Months later the investor voluntarily withdrew the lawsuit.
Sagar Sarbhai, the head of government and regulatory relations at Ripple, has earlier this year also argued that the XRP token isn’t a security. Per his words, there are three reasons why the token isn’t a security:
[Number one] if an investor buys XRP, you do not get a stake in the company [as] dividends are not paid out by Ripple, the company. Number two, Ripple and XRP are two different things. So, tomorrow let’s say for whatever reason Ripple, the company, goes away, the XRP ledger will still stay. XRP ledger is open-source. Anyone can use it. You and I can use it.
As for reason number three, he argued the XRP ledger “uses a consensus mechanism” that requires validators. Despite everything that has in the past been said about XRP being or not a security, Wright kept on arguing with the cryptocurrency’s proponents on Twitter.
In a follow-up tweet, he added XRP is a security as it is bought and sold with the expectation of profit.
For XRP not to be a security, it will need to be a real utility offer. IF something is exchanged with expectations of profit, it is not a utility token.— Dr Craig S Wright (@ProfFaustus) November 18, 2018
XRP is a tradable good that is sold under the expectation of profit. That in itself makes it a security.
Notably, Wright has now attacked most top cryptocurrencies in the space, including BCH, BTC, ETH, and XRP. In the past, he has indirectly called for a 51% attack against BCHABC, as ahead of the hard fork miners threatened to “choke” the competing chain by mining empty blocks – something they weren’t able to do because they didn’t have enough hashrate.
Curiously, a group of miners dubbed ‘SharkPool’ seemingly backs up the use of similar attacks to “kill off” chains competing with bitcoin cash. The pool has revealed it will “exclusively” mine empty blocks on altcoins, and will sell the profits it makes for more BCH.
Shark Pool miners will exclusively mine empty blocks on alts and sell the profits for Bitcoin (BCH).— SharkPool (@SharkPoolCash) November 6, 2018
Sign up pre-release and get 100% of the blockrewards for a year! https://t.co/iNVI9qENx3 #EmptyYourBlocks