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ETH Gate Conversation Intensifies After Ripple CTO And Cardano Founder Debate

Over the weekend, the conversation about the ETH Gate theories started again after the news of the Consensys lawsuit against the US Securities and Exchange Commission (SEC). The discussion intensified following the Ripple CTO David Schwartz and Cardano Founder Charles Hoskinson’s debate on X.

Is There A Double Standard For Ethereum?

On Thursday, crypto firm Consensys sued the US SEC, accusing the regulator of “unlawful seizure of authority” over Ethereum. Following the news, an online conversation sparked regarding the SEC’s alleged favoring of the second-largest cryptocurrency by market capitalization.

X users commented on crypto exchanges’ “double standard.” Many pointed out platforms like Binance, Coinbase, Crypto.com, and Bitstamp delisted XRP after the SEC’s crackdown on Ripple.

Moreover, members of the crypto community also asked for ETH’s delisting. One user stated that if the crypto asset “doesn’t get delisted, we know #ETHGate is real.”

The theories about the SEC attacking Ripple and XRP in favor of Ethereum are part of an ongoing saga that has raised concerns and speculation over the agency’s regulatory inconsistency.

Last year, lawyer and crypto expert Jeremy Hogan weighed in on the publication of Hinman’s emails and drafts from his 2018 speech. Hogan alleged that the former SEC’s Division of Corporation Finance director was likely paid by someone related to the Ethereum Foundation to give a speech giving ETH a “free pass.”

Ripple CTO Questions Hoskinson’s ETH Gate Stand

Charles Hoskinson stated that an apology from the XRP army and Ripple executives was needed before a project collaboration. Hoskinson alleged during a recent X Space meeting that XRP’s community has attacked him daily since 2022.

Following the session, members of the XRP army cursed him out and declared he was wrong. Hoskinson replied, seemingly trying to prove his point, alleging the hate “It’s never-ending and completely devoid of reason.”

Jack, a prominent figure in the XRP community, argued that platforming those who attacked Hoskinson would not help the situation. Cardano’s founder then corrected someone, claiming he “misspoke” and “mischaracterized” the community’s allegations.

Hoskinson clarified he didn’t misspeak, as people believe “members of the Ethereum community bribed the SEC to take out XRP.” According to him, this narrative has reignited several times with “no evidence of it.”

Ripple’s CTO joined the discussion, questioning Hoskinson over his claims of lack of evidence. Schwartz stated: “So, was Hinman not intimately involved? Did he not have a financial interest in Ethereum? Did he recuse himself? Or is that not evidence for some reason?”

To Hoskinson, Schwartz was “inciting a mob by spreading false information.” He also denied invalidating the ETH Gate arguments, claiming his “grand conspiracy statements have always been related to the belief that somebody from Ethereum bribed the SEC to go after XRP.”

The back-and-forth between the two crypto gurus ended with Ripple’s CTO further doubling down on his questions. He asked whether Hoskinson didn’t think any of his statements were evidence that Hinman’s interests influenced and affected the litigation against Ripple, which received no reply.

Ripple, XRP, XRPUSDT

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Ripple CTO Addresses Bitcoin Adviser’s Claims That XRP Is Centralized

Ripple CTO David Schwartz has addressed claims made by El Salvador Advisor Max Keiser that the XRP token is a “centralized” cryptocurrency. Schwartz took to X (formerly Twitter) to clear the air, stating that the Bitcoin Adviser’s opinion of XRP was too ignorant to warrant a proper reciprocation. 

Ripple CTO Criticizes Centralization Claims

On September 24, Co-founder of Volcano Energy and Bitcoin Advisor to El Salvador’s President, Max Keiser made a controversial statement about the XRP token. In an X (formerly Twitter) post, Keiser stated that Ripple’s native token, XRP was “centralized”, which was negatively received by the community and triggered a response from the Ripple CTO.

Responding to Keiser’s controversial claim about the XRP, Schwartz expressed his indignation and stated that he found the statement laughable.

“This is such an incredibly stupid argument I have no idea how I could possibly respond to it other than to laugh,” Schwartz said.

In addition to Schwartz, the Product Head of Visa Installment and former employee of Ripple, Josh Gierscha, also jumped on the bandwagon to debunk Keiser’s claims.

Initially, Giersch had believed that Keiser’s centralization claims were made from an X account impersonating the Bitcoin Advisor or from a fan account.

However, Schwartz revealed that the comment was made by the real Max Keiser. He responded by quoting the original post from Keiser’s real account.

Giersch then topped off the conversation, saying, “Keiser’s an industrial-grade crank, I shouldn’t have expected any better from him”

Keiser’s view on the XRP token was based on the cryptocurrency’s US patent created by Schwartz in 1992 which illustrated a cooperative system involving several interconnected computers. 

This is not the first time that Keiser has said something to draw the ire of the XRP community. The Bitcoin advisor has had a poor view of the token for some time now and occasionally criticizes XRP while idolizing Bitcoin. Back in May, the Bitcoin advisor had come under fire following a statement labeling the XRP token a “shitcoin.”

XRP Twitter Community Reacts To Centralization Argument

The XRP community also poured out to criticize Keiser’s claims about the token. One community member attributed the statements to Bitcoin maxis being scared of the token’s abilities, saying; “Bitcoin maxis are terrified of XRP.”

Another X user jumped in to add their own two cents saying that Keiser was being intentionally misleading to his over 500,000 followers. Pointing to the patent which Keiser used as the basis for his statement, the user said “There’s no way he believes you filed a patent for the XRPL in 1988. Not a chance. Yet this is what he asserts. Seems he’s just an “ends justify the means” type of guy.”

Keiser’s remark on XRP’s decentralization contradicts the inherent nature of the token which is seen in its value as a digital payment currency and an open-source ledger blockchain.

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Ripple CTO Weighs In: Why A Higher XRP Price Is Beneficial For Adoption

In an era where crypto analysis is ever-evolving, some sentiments retain their significance. This was underscored when XRP influencer Crypto Eri delved into a statement from Ripple’s CTO, David Schwartz, that, although over five years old, still echoes pertinently within today’s cryptocurrency discourse.

When Crypto Eri shed light on this older response from Schwartz, she revisited a debate on XRP’s value dynamics. The query, which originated on Quora, surrounded the speculation that institutions might prefer XRP’s price to remain low for optimizing transaction processes. However, Schwartz’s comprehensive clarification brought forth an opposing perspective.

Ripple CTO Weighs In On XRP Price And Liquidity

Schwartz articulated that the presumption of banks or financial entities wanting a subdued XRP price is an overreach. He pointed out a fundamental relationship, stating, “Higher prices tend to correlate with higher liquidity, which means cheaper payments.” To elucidate further, he ventured into the intricacies of how XRP functions as a payment medium.

Drawing an analogy with Bitcoin, Schwartz offered a more vivid understanding. If one were to transact $1 million at a time when Bitcoin was valued at a mere $100, the liquidity constraints would induce significant price volatility. As Schwartz elaborated, “… trying to buy enough Bitcoin to buy the house, you’d push the price up significantly. And when the recipient tried to convert those bitcoins into their local currency, they’d push the price down significantly.”

However, as Bitcoin rose and crossed the $10,000 threshold (at the time of Schwartz’s contribution), its vulnerability to price fluctuations for larger transactions had decreased. Schwartz attributed this stability to the increased value, which requires a smaller share of total assets to facilitate significant transfers.

When drawing parallels, he emphasized that XRP behaves similarly. Therefore, a rising XRP price would undoubtedly make it a superior channel for high-value transactions for the Ripple payment solutions.

Schwartz Clarifies (More) Rumors

Beyond this age-old yet continually relevant perspective, Schwartz remains active in enlightening the community on diverse XRP-related queries. Addressing a recent Twitter proposition about XRP potentially bolstering the top 1%, Schwartz replied with a rebuttal, “I’m not sure I understand this claim. The top 1% of what exactly? XRP empowers anyone who wants to use the ledger to track the ownership and exchange of assets. What kind of control is he talking about exactly?”

On speculations of the Department of Homeland Security’s capability to ‘hack’ XRP, Schwartz demystified, “I’m not sure what a hack of XRP would even mean. The ledger contents are public. The rules are public… No such bug is known, of course. And any exploited bug would be fixed, so you couldn’t hack it the same way twice.”

Lastly, when probing the connection between an old patent of his and XRP’s architectural design, Schwartz elucidated, “I can’t see any real connection between my patent and XRPL design… the patent became mostly irrelevant.”

At press time, XRP traded at $0.4952.

XRP price

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Ripple CTO Addresses Controversy Surrounding BitBoy’s BEN Token Sell-Off

The crypto space is bubbling with many comments and reactions about the sale of BEN tokens by the famous crypto influencer Ben Armstrong, also known as BitBoy.

One of the notable reactions came from the Ripple Labs CTO, David Schwartz, who disclosed that his lack of trust in the YouTuber goes far back in the past. 

BitBoy Accused Of Dumping BEN Token

Armstrong allegedly sold off his BEN tokens, a newly launched crypto asset he controls. As reactions on social media platforms intensified, Schwartz revealed his dislike for BitBoy.

The CTO responded to a tweet on May 18 implying that Armstrong operated as a scammer by selling off the tokens even when he promised never to do so.

Schwartz boldly stated that, “I was hating on him before it was cool.” This indicated that Schwartz’s negative view of Armstrong dates back to the past, even before the recent incident.

A Web3-based corporate attorney and the Founder and Principle lawyer of Givner Law firm, Ariel Givner, also shared a Twitter post about an interview with BitBoy on May 14.

During the interview, Armstrong reportedly mentioned that he had no intention of selling BEN tokens. Givner disclosed how BitBoy expressed his trust and commitment to the BEN project. She also recalled that BitBoy revealed plans to maintain his holdings regarding his close ties with the project.

Additionally, the YouTuber had earlier stated that he had not locked his BEN tokens intentionally. To him, it’s a means of pissing off his haters that believe he is dishonest, a scammer, and a grifter. But according to Givner, the YouTuber contradicted his words and sold all the BEN tokens in his holding.

She alleged that Armstrong disposed of all his BEN tokens for approximately 45 ETH through multiple transactions. While providing proof of the transactions, Givner retorted that it’s “A tale as old as time.”

BitBoy Denies Dumping The Tokens

Armstrong has denied allegations of dumping the BEN project. The crypto influencer explained that he moved the tokens to generate funds for financing a deal that involves the BEN Foundation.

The YouTuber said that the original backer of the deal was delayed, so he sold off his tokens to step in and support it. Meanwhile, BitBoy didn’t reveal the transaction, and his claims didn’t go down well with most proponents.

However, the on-chain data provider, Etherscan, highlighted transactions from the wallet address connected to Armstrong. According to the data, the YouTuber swapped about 1 trillion BEN tokens for almost 45 ETH in three separate transactions.

BEN

Featured image from Pixabay and chart from Tradingview.com

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Ripple CTO Reveals Facts About Present XRP Burn Debate

The Chief Technology Officer (CTO) of Ripple, David Schwartz, has provided valuable information about the ongoing debate surrounding the burning of XRP tokens.

The debate about burning XRP tokens has been hot within the XRP community, and Schwartz’s insights shed light on the XRPL’s governance structure and the decentralized nature of the network.

The discussion primarily revolved around the authority and decision-making process concerning the XRP held in escrow and the role of validators on the XRP Ledger (XRPL).

Burn Debate Insight From Schwartz

Schwartz highlighted the importance of understanding the fundamental principles and mechanisms behind the XRPL. He explained that the XRPL operates on a consensus protocol where validators, distributed across the network, play a crucial role in maintaining the ledger’s integrity. And validators are responsible for verifying transactions and reaching a consensus on the XRPL.

Regarding the burning of XRP tokens, Schwartz emphasized that the XRPL’s design does not include a built-in mechanism for burning XRP.

The CTO also stated that changes to the XRPL’s code are governed by a decentralized process, ensuring that all participants have a voice in determining the network’s future.

So altering the XRPL’s code to incorporate such a feature would require extensive consensus and agreement from the majority of validators, around 80%.

One of the key points raised during the conversation was the claim made by an XRP community member, suggesting that the XRPL would become a permissioned network if validators had the power to determine the fate of the XRP in escrow.

This statement sparked a significant amount of discussion within the XRP community, as the decentralized nature of the XRPL has always been a critical aspect of its design.

Regarding that, Schwartz clarified that while validators play a crucial role in the XRPL’s consensus process, the network’s nodes can accept or decline amendments voted into effect by validators.

This system ensures that the power to influence the fate of the XRP held in escrow is not concentrated solely within the validators’ hands.

Instead, it allows for a decentralized decision-making process that considers the perspectives and interests of various participants.

XRP Price Dips In Recent Days

Amid the discussion in the community, the token’s price has experienced a minor decline in recent trading sessions. Over the past seven days, XRP’s price has seen a marginal decrease of 0.56%, indicating a relatively stable trend.

Ripple CTO Reveals Facts About Present XRP Burn Debate

Within the past 24 hours, the coin has witnessed a slight downward movement, with a decline of 1.36%. This modest dip reflects the current volatility in the token market.

Related Reading: DOJ Crypto Task Force Goes After DeFi Hackers As Illicit Activity Soars

The coin is changing hands at $0.422, with a market cap and a 24-hour trading volume of $21,883,129,482 and $765,847,908, respectively.

Featured image from Pixabay and chart from Tradingview.com

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Litecoin Foundation’s Project Director Makes The Case For LTC’s Network Effect

Old faithful Litecoin turns 10 years old on October 7th. After a decade of activity, it’s still going strong. A faster and lighter Bitcoin fork, LTC’s objective has always been to be the silver to BTC’s gold. And this crazy year of high fees, Litecoin might’ve proved its worth. For many, it became the instrument of choice for sending money around without paying an exorbitant fee.

Our sister site, Bitcoinist caught wind of this development and reported:

Data compiled by @MASTERBTCLTC shows the number of Litecoin transactions is just under 75% of that of the number of Bitcoin transactions.

“Litecoin transactions are 75% of the total bitcoin transactions.
When will litecoin transactions flip bitcoin transactions?
Sometime in 2021 I predict.
227k BTC vs 168k LTC transactions.”

More significantly, @MASTERBTCLTC suggests this could be the start of an uptrend leading to a flippening in transaction count sometime this year.

We wouldn’t go that far, but it definitely is an interesting development that deserves further study. Luckily for us, Litecoin Foundation’s David Schwartz broke the case for its “network effect + ever growing status over the near past 10 years.”

Related Reading | Grayscale Loads Up On Litecoin, Dumps BTC & Other Coins, But Why?

Litecoin’s Transactions Are Cheaper And Faster 

This is by design. The cheaper and faster transactions are the reason for Litecoin’s creation. However, the case hereby presented is that LTC “has changed from mostly a method to transfer BTC during peak cycle to one of more ‘regular’/payment” and transaction usage. The asset seems to be changing.

The Litecoin project boasts a decade of name recognition, it shows resilience and adaptability. While no blockchain is as busy as BTC’s, the LTC blockchain is far from a ghost town. It’s bursting with activity and ready for your transactions. There’s also proven liquidity in the market. Litecoin is basically a pristine asset.  

Back to the metamorphosis, here we can see that “Transactions are well above average & growing exponentially each cycle.” Does that mean that Litecoin is becoming a payment instrument?

The “comparable growth rate in overall, new & non-zero addresses with both” ETH and BTC is an interesting statistic. And the point about the lack of headlines LTC receives is well taken.

LTCUSD price chart for 06/07/2021 - TradingView

LTC price chart on Kraken | Source: LTC/USD on TradingView.com

Is LTC Undervalued? Is This a Buying Opportunity?

Obviously, David Schwartz has a vested interest in Litecoin. However, the case he presents has merits. A ten-year-old coin with new use cases is not something we face every day. In any case, as long as you know that this isn’t financial advice of any kind, we can keep exploring the case and doing our own research.

So, Litecoin is part of many financial instruments including a Grayscale Trust. Is the price reaction to that fact lagging or non-existent? Also, there’s a halving on the horizon and the always faithful hard cap or fixed supply. Plus, as we said in the intro, the number of transactions keeps growing. 

The picture Schwartz paints sure it’s interesting. The tide may be turning for Litecoin.

The last point is pretty compelling

LTC also benefits from developments done by Bitcoin devs, requiring less full time direct devs unless necessary and less github activity.

By not trying to stand in Bitcoin’s spot and always knowing its place, Litecoin gets to benefit from all the incredible developments the Bitcoin community offers to the world. The activity around Bitcoin’s chain is second to none. Litecoin is a direct beneficiary of that. 

Related Reading | New Litecoin All Time Highs Are Still In The Cards

People used to say Litecoin was redundant but, if Schwartz is right, this classic coin might’ve found its lane. A decade later. What an inspiration. Now the question is, will the new status as a transaction asset reflect on LTC’s price? 

Featured Image by Alina Grubnyak on Unsplash - Charts by TradingView