XRP Can't Be Confiscated by Government, Says Ex-Ripple Director, Here Are 3 Reasons Why (2024)
Ripple's former director of developer relations, Matt Hamilton, once again addressed the XRP community, clarifying rumors of a possible government buyback of the token from the market. Like last time, he stated that such a course of action would not be possible, the main reason being that the value of digital assets is ascribed by their users.
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There is a small, but very vocal minority of the XRP Community that is promoting a crazy idea of the US government buying back / confiscating XRP from US citizens, yet for some strange reason compensating them 100's of 1000's of % above market rate.
"XRP and Bitcoin have no intrinsic value; their value is determined by a set of transactional rules devised by a decentralized group of people," the developer argued.
As well as refuting yet another round of nonsense about XRP being bought back by the government, Hamilton also broke down talk of possible confiscation. This speculation has emerged as an extension of the original conspiracy theory. As a reminder, there are rumors that XRP is to be confiscated from the market by the same government for its own use and so that the technology is not spread anywhere else.
According to Hamilton, confiscation of XRP is impossible for at least three reasons. First, the developer notes, XRP is a decentralized cryptocurrency and cannot be seized without forcing key holders. Second, it is easier for the government to create its own digital token if it need it for its own use. Finally, if the U.S. government restricts everyone from using XRP, it would kill any use of the token and it would simply be replaced by a fork.
I'm an expert with a deep understanding of blockchain technology, cryptocurrency ecosystems, and decentralized finance. My knowledge extends to the intricacies of various digital assets, including Ripple's XRP. My expertise is grounded in a comprehensive grasp of the underlying principles, technical aspects, and market dynamics within the blockchain space.
Now, let's delve into the concepts mentioned in the provided article.
1. Ripple's Former Director of Developer Relations, Matt Hamilton:
Matt Hamilton is identified as the former director of developer relations at Ripple. This title suggests that he played a significant role in managing relationships between developers and Ripple, a company known for its involvement in blockchain and digital payment solutions.
2. Government Buyback Rumors:
The article addresses rumors suggesting a possible government buyback of XRP from the market. Matt Hamilton dismisses this idea, emphasizing that the value of digital assets, including XRP, is determined by users, and such a course of action would not be feasible.
3. Value of Digital Assets:
Hamilton asserts that XRP and Bitcoin have no intrinsic value. Instead, their value is determined by a set of transactional rules devised by a decentralized group of people. This reflects the fundamental concept in cryptocurrency that value is driven by network consensus and utility.
4. XRP Community and Conspiracy Theories:
The article mentions a vocal minority within the XRP community promoting the idea of the U.S. government buying back or confiscating XRP from citizens. Hamilton labels this notion as a "crazy idea" and dismisses it as baseless.
5. XRP Confiscation Speculation:
The article extends the discussion to rumors of possible XRP confiscation by the government for its own use, preventing the spread of the technology elsewhere. Hamilton refutes this speculation and provides three reasons for its impossibility.
6. Decentralization of XRP:
One reason mentioned by Hamilton is that XRP is a decentralized cryptocurrency. Confiscating it would require forcing key holders, highlighting the resistance to centralized control inherent in blockchain technology.
7. Government Creation of Digital Token:
Hamilton argues that if the government needs a digital token for its own use, it would be easier for them to create their own rather than confiscate XRP. This emphasizes the flexibility and adaptability of blockchain technology.
8. Killing Use of XRP and Forks:
The article concludes with Hamilton stating that if the U.S. government restricts everyone from using XRP, it would lead to the death of its utility, and a fork (a divergence in the blockchain, creating a separate version) would likely replace it. This highlights the resilience of decentralized systems in the face of external restrictions.
In summary, the article provides insights into the speculative rumors surrounding government actions related to XRP, with Matt Hamilton leveraging his expertise to debunk these notions based on the decentralized nature of XRP and the broader principles of blockchain technology.
Like last time, he stated that such a course of action would not be possible, the main reason being that the value of digital assets is ascribed by their users.
Ripple recently scored an unequivocal victory from a dollars-and-cents standpoint in a class action securities lawsuit, with the judge tossing out most of the case.
Since the lawsuit concluded, a Ripple XRP price prediction is going to be challenging to say the least. In 2025, there are some who are now calling for $2, while at the same time there are people suggesting that $5 is more likely.
However, if Ripple loses all appeals, the SEC is likely to collect the $1.3 billion (the amount that the regulator alleges that Ripple earned from the unregistered securities sale) and offer XRP holders an option to sell their holdings.
Ripple lawsuit ruling awaited. Ripple could see the end of its lawsuit with the Securities and Exchange Commission soon, per recent reports. An analyst predicts XRP rally to $17 through the Bent Fork chart, a bullish thesis for the altcoin.
Can XRP Reach 500 Dollars? For XRP to achieve a price of $500, it would necessitate an increase of over 1,000 times its current value. While theoretically possible in the dynamic world of digital assets, this scenario faces significant practical hurdles.
David Cox, writing on the CryptoNewZ platform, anticipated that XRP could reach a high of of $1.53 by 2025, with a low of $1.06 for the same year. Another Ripple price forecast by AMBCrypto estimated the XRP price could hit a high of $2.01 in 2030, with a short term prediction of a high of $0.61 in 2024.
The SEC accused Ripple of selling XRP in an unregistered security offering. The outcome of the U.S. regulator's court case against Ripple might still have far-reaching consequences for the cryptocurrency industry. Both the SEC and Ripple emerged somewhat victorious in this court case.
Forbes has labeled Ripple Labs as a "crypto zombie," citing its low active user base and speculative nature of its XRP token. The company's primary mission to disrupt the global payment system, dominated by SWIFT, has not materialized.
Regardless of the bearish certainties, many analysts continue to remain bullish on XRP and believe it to be a good time to stack XRP. The recent SEC update has boosted optimism around the token.
How many Ripple holders are there? According to data provided by CoinCarp XRP is held by 4,840,747 individual wallets as of July 2, 2024. The top 10 Ripple token holders hold over 41% of the total token supply, and the top 100 hold over 73%.
If you make an XRP transfer without a destination tag to a deposit address that requires it, the funds may be lost or you may need to pay an extra fee for retrieving them.
XRP trading would be more complicated if the coins were found to be securities, Ripple's lawyers said — and sellers might even face individual liability for trading unregistered securities. It would also be harder, according to Ripple, for businesses to accept and make payments using XRP if the tokens are securities.
The XRP Ledger is a shared system, with all data recorded publicly and carefully, securely updated with each new ledger version. Anyone can look up the exact outcome of any transaction and read the transaction metadata to see what it did.
Introduction: My name is Msgr. Refugio Daniel, I am a fine, precious, encouraging, calm, glamorous, vivacious, friendly person who loves writing and wants to share my knowledge and understanding with you.
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