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Friday, September 30, 2022

ALERT! New SEC Chairman Is Coming For XRP

Shake it up Biden now shake it up Biden? Ya the SEC has a new chairman kicking the acting chairman to the curb soon. Is this new guy, good or bad for crypto & what does this mean for quarter 1 of 2021!? Coinbase IPO still a go? XRP is it a Security!? Well, let’s find out in about 10 minutes because it’s time for Chico Crypto! So, who did the Bidster pick to lead his SEC commission presumably for the next 4 years!? Well, it wasn’t one of the acting democratic commissioners, Alission Lee or Caroline Crenshaw. It was a newbie, Gary Gensler.

So who, what, where, and why is Gary Gensler!? Well, Gary is actually a former banker for Goldman Socks then turned financial regulator for the Obama administration. Serving as chairman of the CFTC, from 2009 to 2014. But he started with ole bill Clinton, serving in smaller financial government positions from 1997 to 2001. So, Gary is back in the driver’s seat as a chairman with Biden who he worked with before.

But this time it’s with the SEC. What is Gary’s mission going to be?? Well, we have to go back in time and see what Gary has been doing since leaving the CFTC. Did he turn pro-crypto? Did he get involved with cryptocurrency!? Pro-crypto maybe but he did get involved with the industry. January 2018, it was announced by the MIT Digital currency initiative, that Gary was joining them as a Senior Advisor & even as a senior lecturer aka professor.

That is pretty damn involved. Which we can confirm, some of his courses are online for free, links for those are in the description if you want his full thoughts on crypto, 24- hour-long sessions. AKA a full day of Gary. Can’t handle that, well luckily you have chico to break his thoughts down. So obviously by joining MIT and the digital currency initiative he is pro-bitcoin as they are pro-bitcoin.

Most of their initiatives are bitcoin-focused, including bitcoin core development, but they also dabble in zks & cbdcs. Wall St. Journal covered him like for bitcoin and blockchain technology in 2018, in an article titled “Former CFTC Chair Has Bitcoin on the Brain†And this is evident from his courses, in an introductory course: Money, Ledgers & Bitcoin you can see the enthusiasm in his eyes, pushing his students and viewers to read Satoshi Nakamoto’s whitepaper.

So, that is a good sign out the gate. He understands the technology & agrees that bitcoin is not a security. Bitcoin gets a nod and a green check from Gary. So what about the others? Ethereum, XRP, the thousands of other ICOs. What are his thoughts beyond just BTC?? Let’s begin with Ether besides BTC, Ether is the only other digital currency the CFTC has publicly stated is a commodity.

And this view by Gary’s former division was just reinforced in December, when CME, the Chicago mercantile exchange confirmed Ether futures would launch in February of 2021. Aka next month So what’s Gary’s own views? Well, he gave a lecture, called Smart contracts and apps, which of course included Ethereum, but also his thoughts on if he thinks its a security. Let’s listen in. So, he does personally think the Ethereum ICO, was security offering back in 2014, but there are ruling’s that it’s sufficiently decentralized.

Moving out of the securities basket. And again CME launching futures in a month confirms that. So ether gets a green check, but with a task from Gare Bear. So now the big questions that need to be answered are XRP as I’m sure their Army has been holding their breath regarding the new chairman. Well sorry to burst your XRP bubble, but it isn’t the best of news. Let’s hear it. He has strong views that yes it’s a security, but it’s not up to him it’s up to the courts.

Which as we know, Ripple is in the middle of right now. Defending that XRP is not a security. And thanks to Leonidas on Twitter for putting this together, but the lawyers have been set for both the SEC and Ripple, and it’s a long list of lawyers on the XRP side, as they are obviously going to need it with the SEC confirmed to be aiming to be moving full steam ahead with the security ruling.

So the court battle will rage on. Which methinks why, Flare their Plan F, is moving full steam ahead with their network launch, planned for quarter 2 of this year. Even now integrating with Litecoin and dropping to their holders pushing them away from fully airdrop dependent, on just the possible security XRP. But regarding Flare, it’s one of the thousands of other cryptocurrency and blockchain projects trading in some form, centralized exchange like Binance or coin base or decentralized through something like uni swap.

So what are Gary’s thoughts on those? ICOs, Airdrops, NFTs, IEOs?? The altcoin you may be holding!? Well before we get into just that, it’s time for a sponsored segment of this article supported by the team at Shopping.io & like always, if you’re watching gare bear, I do it right the full details of our agreement are below. What do I like about shopping.io? Simplicity’s a gateway to make purchases from eCommerce sites with cryptocurrency from sites like Walmart, Amazon, eBay & more. Easy signup, with tiered plans based on staking their token SPI, which we will get into in a second.

Once signed up, and then into orders, you can browse for products to buy through the major retailers. Per example searching for an iPhone, you can see the results from each retailer, amazon, ebay, walmart and even aliexpress. Now we ain’t ordering an iPhone, let’s order some cat food for kitty Wayne. Putting in an order is simple, just like any online checkout & shopping.io has integrated with Coinpayments for payments, who is hands down the most trusted crypto payments provider in the world to date, serving the needs of the big dogs.

At the coin payments checkout page, you have to option to pay in bitcoin, and over 70 other cryptocurrencies A free account with them is nice, you get spend your crypto easily and you get the bonus of free shipping in the USA, but you’re limited to 20 orders per month. Although they too have 2 other plans, for fulfilling mega shopper needs, the starter and pro plans.

And these require their tokens SPI tokens to be held in an Ethereum wallet. As we can see for the starter plan, 1000 SPI is required to be held and with the pro plan, 2000 SPI is required to be held in your meta mask wallet. And each gives some their one bonus. Starter, 5 percent discount on all items from amazon, Walmart and eBay, free USA shipping, international shipping option and access to VIP telegram group, and bumps limit of orders to 50 per month. Pro, 10 percent discount, all the other bonuses as the starter, plus it increases the number of orders to 100 per month.

And remember, access to these plans you aren’t spending the SPI tokens, but just holding them with the option to remove at any time. So, you may be asking about the tokenomics of SPI? Well, there was a 1 million hard cap supply created on Ethereum, and this entire supply was put into a Uniswap liquidity Pool.

There was no ICO, presale, or team token allocation. Now you may say, what about rug pulls with Liquidity from Uniswap, well the shopping.io team has locked up over 83 percent of the liquidity, uni swap liquidity tokens with Trustswap. Now you may be asking yourself, what happens to the trading fees from the liquidity held? Well, the entire Uniswap trading fee pool is distributed every 7 days to stakers of SPI which if we see the trading volume on the swap, over 2 million 24 hours.

Not a bad return for the stakers which this week it’s estimated to be 55 thousand dollars going to them and this staking happens through their ownstaking platform found at www.spi.club of course links for everything is down in the description. So, those who are just holding your crypto & don’t’ want to get back into fiat.

There are options, and shopping.io, provides free ones, just holding SPI options, and staking options. Now back to Gary Gensler and his thoughts on ICOs and altcoins. Well sorry to burst the altcoin bubble, it’s not good. April 2018, out of MIT’s own technology review blog, they posted this article.

“Former regulator under Obama says more than 1,000 ICOs are not following the law†In the article, it stated Gesler has said “More than $10 billion has been raised via ICOs, a blockchain-based fund-raising method. But a significant fraction of these are fraudulent, and many were launched in a way that is not compliant with US securities laws established in the 1930s.

To reach its full potential “blockchain technology will need to come within the public policy framework and We’re not in very good shape right now.†Which is confirmed by his words on Bloomberg in 2018. Let’s listen in. So in Gary’s eye’s if your project Ran an ICO, and raised funds, you may just be a security.

So if you hold an ALTCOIN, that raises funds within the United States, there may be questions from Gary’s department down the road. But it’s a specific case by case matter. Just raising funds does not directly put you into the securities basket. It all comes down to decentralization folks.

s your project sufficiently decentralized? You can confirm this from this 2018 Bloomberg article titled “Former CFTC Head Says Big Cryptocurrencies Could Be Classified as Securities†And in it, Gensler said this to Bloomberg regarding classifying tokens as securities. “There’s a strong case, particularly for Ripple,†as Ether is more decentralizedâ€. Now for the altcoin holders. It’s time to take a big introspective look into what you are holding.

Did it run an ICO, did they take investors where they weren’t supposed to, is there even a freaking product, and is that freaking product sufficiently decentralized? If more than a few are those are checked, especially no product. All I have to say is yikes. But what about those that raised no funds, like an airdrop!? Well luckily the gare bear has also has talked on this in 2018 as well, just a clip, but let’s watch now.

Airdrop’s do not get you off the hook!? What does he mean!? Well, it all comes down to once again, decentralization and product, and token airdrop distribution. Did the runners of the airdrop enrich themselves? Did they pull of a seriously unfair distribution?? Gary doesn’t like that as seen from his thoughts on the reason for XRP being a security and Ripples token distribution.. Unfair distribution, continually enriching themselves.

If the Airdrop did that, it just might be a security. So those thinking of dropping. Make sure you have a product, it’s decentralized & don’t get greedy. But what about those NFTs non-fungible tokens!? Gary has also spoken on these specifically crypto kitties and those hold a special place in his heart for some reason.

Let’s listen in. His thoughts on NFTS are good, as it comes down to seat license and special ownership. So my friends, changes. They are coming to the crypto industry led by the SEC. These last words from the Gare the bear on Bloomberg sum it up to the extent they can, what extent they will go is to be seen.

Cheers, I’ll see you next time!.

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