Binance CEO: ‘Our Judgement’ Is That XRP Is Not a Security

Siamak Masnavi

On Tuesday (March 5th), Changpeng Zhao (also known simply as "CZ"), Co-Founder and CEO of Binance, held his second Ask Me Anything (AMA) session on Periscope, and during this session, he stated that Binance does not believe that XRP is a security and would continue to see XRP as innocent until proven "guilty". In this article, we take a closer look at how Binance has been "very supportive of XRP."

Near the end of this AMA session (transcript posted on Binance's blog), CZ, the Binance CEO, answered the following question: "Do you have any announcement for XRP?"

This was CZ's reply:

"People are aware that there is a lawsuit against XRP [he meant, Ripple, of course] on whether they are a security or not. Our judgement is that they are not. And until it's proven that they are, we listed them, and luckily we dragged other exchanges to list them. That's good thing... Just because there's a lawsuit doesn't mean they are guilty. So, we applied our judgement there, and we're always very supportive of XRP. There's a lot of guys who complain that it's overly centralized, but look, the market votes with their feet, and XRP is one of the largest market cap coins, and it's like that for a reason."

Now, let's try to focus on each of CZ's two main points.

XRP Should Be Presumed Innocent Until Proven Guilty

Pesumption of innocence is "the legal principle that one is considered innocent unless proven guilty;" this has been "traditionally expressed by the Latin maxim ei incumbit probatio qui dicit, non qui negat ('the burden of proof is on the one who declares, not on one who denies')." It is also "an international human right under the UN's Universal Declaration of Human Rights, Article 11."

Now, of course, XRP is a cryptocurrency and not a person, and the current class action against Ripple Labs, its subsidiary XRP II, and Ripple CEO Brad Garlinghouse, which claims that investors were sold unregistered securities (XRP tokens), is a matter of a civil law and not criminal law.

However, CZ has a good point. Just because there's a lawsuit against Ripple, it does not mean that XRP is "guilty", i.e. a security. That's why Binance decided to treat XRP as "not a security" until it has been proven that it is, and decided to offer XRP on its platform. 

It's also worth pointing out that this was not the first time that the Binance CEO has expressed the view that XRP is not a security. For example, this is what he said on 12 December 2018:

Also, it is highly interesting that California-headquartered crypto exchange Coinbase, which was afraid for a long time that XRP might be a security, finally decided to put aside its fears/worries, and listed XRP on Coinbase Pro (and later Coinbase.com) on February 25th, and it is doubtful that it would have decided to do so had its legal team not assured the management team that going ahead with listing XRP was a relatively safe decision.

Complaints About XRP Not Being Fully Decentralized

As CZ notes, there are a lot of people in the crypto space who "complain" that XRP is "overly centralized" (even despite Ripple CTO David Schwartz's many explanations of why these people are wrong) and that cryptocurrency exchanges such as Binance and Coinbase should not be listing XRP for this reason alone. CZ, however, believes that "one of the best ways to identify projects with value is the user base," and one thing that nobody can argue with it is that XRP has an extremely large and passionate "user base."

And he referred to this idea in his AMA session:

"... but look, the market votes with their feet, and XRP is one of the largest market cap coins, and it's like that for a reason."

 

Featured Image Courtesy of Binance

Crypto Market Update: Focus on BTC, ETH, BCH, BNB, XMR, and DASH

Siamak Masnavi

This article provides a quick overview of how the crypto markets have been doing—with the focus on Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Binance Coin (BNB), Monero (XMR), and Dash (DASH)—over the past 24-hour period.

Overall, September 17th is proving to be a bit of a mixed day, with 12 of the top 20 cryptocurrencies (by market cap) in the red at press time (around 06:25 UTC).

BTC-USD

BTC-USD 24 Hour Chart - 17 Sep 2019.png

The bad news is that are still waiting for the launch of Bakkt's physically-delivered daily and monthly Bitcoin futures contracts. So, Bitcoin is still trading mostly sideways, hovering around the $10,300 mark. The good news is that the launch is expected to take place in less than one week (i.e. on September 23), as was confirmed by this tweet that Bakkt sent out on September 16:

ETH-USD

ETH-USD 24 Hour Chart - 17 Sep 2019.png

The Ether (ETH) price continues its upward movement toward the $200 mark, up another 2.24% in the past 24-hour period (making it up 4.32% in the past 7-day period). What may have helped the Bitcoin price yesterday (September 16) is the announcement by crypto payment processor BitPay that in the near future it will be possible for its customers to accept Ether payments for purchases of goods and services. Also, the BitPay wallet will support Ether.

Ethereum co-founder Vitalik Buterin had this to say about the news:

"It is exciting to see BitPay leading the way in integrating Ethereum into global payment systems. This truly opens up a new world of possibilities for the Ethereum ecosystem, and together we can continue to be a leading innovator for real world use cases for cryptocurrencies.

BCH-USD

BCH-USD 24 Hour Chart - 17 Sep 2019.png

On Monday (September 16), Bitcoin.com announced that it had entered into a strategic partnership with Taiwanese smartphone manufacturer HTC, as a result of which the Bitcoin.com wallet will come preinstalled on HTC's current and upcoming blockchain phones (Exodus 1 and Exodus 1s):

BNB-USD

BNB-USD 24 Hour Chart - 17 Sep 2019.png

Although BNB is currently in the red, this may change during the next several hours once all of the six mini announcements that Binance plans to make today have come out:

The first of the six announcements that Binance CEO Changpeng Zhao (aka "CZ") referred to is the addition of support for Cosmos (ATOM) to Binance's Margin Trading platform:

XMD-USD

XMR-USD 24 Hour Chart - 17 Sep 2019.png

OKEx Korea announced on Monday (September 16) that it intends to delist all five privacy coins it is currently supporting, i.e. XMR, DASH, ZEC, ZEN, and SBTC, due to concerns that these cryptocurrencies do not allow it to implement FATF's so-called "travel rule". 10 October 2019 is the date on which transaction (i.e. trading) support ends.

DASH-USD

DASH-USD 24 Hour Chart - 17 Sep 2019.png

Since OKEx Korea's delisting announcement mentioned DASH, you would expect it to be down today, just like XMR. However, it is not, and that is very likely due to the fact that today (September 17) is the day that trading in DASH is expected to start on Coinbase Pro on/after 09:00 PST (16:00 UTC) provided that there is sufficient liquidity.

Featured Image Court: Photo via Pixabay.com