Well, I haven’t made the video yet, but I’m pretty sure now is the right time to say…..I told you so!! Ripple is a trashy company, and XRP is not crypto. But there is so much more to this story, like there always is. So get ready for my lullaby. It’s time for Chico Crypto!! Well the case…it is happening, the pretrial has been set & as we can see from the court filing. This pre-trial conference takes place on February 22nd.
So what is going to happen here!? At the pretrial conference??The lawyers usually appear at this hearing before a judge without their clients and try to agree on undisputed facts or points of law. Also the judge and the lawyers will review the evidence and try to clarify the issues in dispute. If the case is not settled here pretrial, the court will set a date for the trial. So there’s another opportunity for Ripple to settle. Yes if you didn’t know Brad Garlinghouse, and those involved had a chance to settle and make this go away.
December 22nd, Brad put out a blog post titled “The SEC’s Attack on Crypto in the United States” and he said “Chris and I had the option to settle separately. We could do that, and it would all be behind us. NOT happening. That’s how confident Chris and I are that we are right. We will aggressively fight – and prove our case – through this case we will get clear rules of the road for the industry here in the U.S.
We are not only on the right side of the law, but we will be on the right side of history” All I gotta say is bajeezus, trying to stick a middle finger to the SEC, is not gonna work. Many tried to do it in the 80s, 90, and even 2000s with wall st. They failed. You will too. So, in my opinion, it would be good to settle, and not get laws written that have a really good chance of hurting the industry for good, but because you think you’re right, you want to take that chance!? There has to be more to this story… Well there sure is…and we gotta dive into the SEC actual complaint to find what that is.
And it comes in the section tolling agreements. So 1st what is a tolling agreement!? Well it’s a legal tool, of which entities like XRP can use, businesses and enterprises, to delay a lawsuit to possibly come to an agreement before the lawsuit is filed. And as we can see, the tolling agreements went from April 1st 2019 all the way to December 24th 2020. So for 1.5 years, Ripple has known about this, and has been delaying it, but not settling. It sounds like XRP was a part of the group who got hit in 2019, but they didn’t settle, while the others did…
Remember EOS getting hit? Block one settled 6 months after Ripple’s first tolling agreement, September of 2019 out of court, by paying the 24 million dollar fine. So what’s XRP trying to prove in court!? What’s their end goal?? Well the proof is in the pudding. I covered it before all this went down. Ripple in my opinion, is covering both their bases. They are going to court to try and make them “THE” one cryptocurrency, by law.
Vitalik know’s it. He tweeted about it after the SEC’s complaint was filed. “Looks like the Ripple/XRP team is sinking to new levels of strangeness. They’re claiming that their shatcoin should not be called a security for *public policy reasons*, namely because Bitcoin and Ethereum are “Chinese-controlled”. Yes that is taken from what they have said to the SEC as reasons for why they are better. This is their plan in court…it’s going to be their narrative. But in my personal opinion, Ripple aint stupid…they know that it’s an uphill battle, lengthy, lengthy trial & expensive as can be. And there is a strong, strong likelihood that they lose, and XRP is ruled a security. So what was their Plan B!? Not Bitcoin…But Plan F…
Flare Aint it a quinkinkie, right before this the Flare airdrop was pulled off..December 11th the snapshot was executed for the XRP ledger…then December 18th, it was figured out over 45 billion Spark tokens would be airdropped to the XRP holders, including the Ripple team, under a “charitable organization”…they obviously want their spark. I wonder why!? Now Coinbase, they decided to “Suspend” XRP next month, form their help section on this SEC lawsuit, they also said this besides the suspension announcement “Further, customers will remain eligible for the previously announced Spark airdrop (subject to approval in certain jurisdictions)” You would think, with all this uncertainty, Coinbase would throw the airdrop out the window.
Why support another liability tied to Ripple on your exchange?? Unless it’s not a liability. So we gotta back up to the batch of projects who went down in 2019. Enigma…they decided to settle with the SEC in early 2020. They had to return the funds to ICO investors through a claims process, pay a 500k penalty, but also the kicker. Register their ENG tokens as a security.
This is exactly what the SEC wanted ripple to do. Return funds to those who have been burned, pay the penalty, but also register XRP as a security. Effectively killing it. As what happened to ENG tokens? Killed….but not in the way you think. Months after the settlement, a “community” effort was launched called the SeCReT network, taking the technology developed by Enigma, and applying it to this community governed decentralized network.
And ENG holders, could do a token swap, to receive SCRT tokens. Now ENG, they registered with the SEC, they were forced to & explained what is going on with Secret. They had to explain how it’s decentralized, proof of stake, it has utility with secret contracts, applications that can be built and it governed by the community of token holders. In August of 2020, Flare put out a blog, doing the exact same thing.
How it’s decentralized, no centralized intermediaries needed. The utility fully explained, The dependent applications taht will be built on it, and how its governed by the token holders. HRMMMMMMM Smells like Plan F to me…this was their “token swap” if this lawsuit doesn’t work out how they plan. Where they are ruled, the rulers of crypto. And bitcoin and ethereum are ruled…chyna. They can still stick around with Flare… So the big question is this? Flare or XRP? But first, regarding the SEC, lawsuits and uncertainty with a token this leads me right into the sponsored segment video, supported by the team at stacks, who doesn’t have to worry about any of that, and like always the full details can be found in the description. Why doesn’t stacks have to worry, well I covered it last week, back during their fundraising stage, they registered the token sale with the SEC under Reg A+, the first regulated token offering.
A 1st in 2019, and at the beginning of 2021, another 1st is coming, and things are about to get VERY interesting for stacks. Reuters covered it in an article titled “Blockstack’s digital currency ‘Stacks’ to be tradable in U.S. once new blockchain arrives.. The article says “With the launch of Blockstack’s Stacks Blockchain 2.0 on Jan. 14, 2021, the company’s network will be no longer be controlled by any single entity and its Stacks token can no longer be considered a security under SEC regulations… Yes it all comes down to decentralization with the SEC, and once January 14th comes, it will be the first token to transfer from the “security” basket to a non security, tradeable across the US exchanges.
This is BIG news for the future of the protocol, and exchange listings. Remember in July blockstack was considered for listing with Coinbase? Well they are now in the clear, and stacks has been doing everything to prepare including setting themselves up with the Coinbase Rosetta API. But what does stacks do!? What’s the utility of their blockchain…??? Well, something which has been much needed since 2009. Applications and smart contracts to bitcoin. So how does it work?? A simple way to think about it is like this…People are trying to bring Bitcoin to Ethereum but stacks is going the other direction, bringing Ethereum-like functionality to Bitcoin, unlocking the potential of the 500 billion dollars in capital and the 130 exahashes per second of hashpower securing the chain and capital.
The stacks blockchain, anchors itself to the Bitcoin blockchain & uses proof of transfer mining to secure it’s network. Mining on Stacks 2.0 allows miners to mint new Stacks (STX) tokens by simply forwarding Bitcoin to the network, while Stacking enables “Stackers” to earn that BTC by locking up their STX tokens on the network. Thus the end settlement of all that is built on top of stacks, assets, contract, and applications is secured in the end by BTC. That means DeFi is secured by BTC, and this is powered by their smart contract language called clarity.
Which is predictable, secure, and what I think sets the language apart. No compiler. What devs write, is what gets executed. So in 2 weeks, this goes live, on the mainnet & there is one more thing we need to bring up. The Stacking with STX tokens. So what is this? This is using your STX to further secure the chain, and be rewarded in Bitcoin for it. The requirements for Stacking are simple: users need to hold a dynamic minimum amount of STX, which they can pool to meet, and ‘lock’ them on the network for the reward cycle, which is two weeks. By locking it and sending periodic transactions, these users support blockchain consensus and further secure the network. Stacking is a new, more secure way to earn bitcoin without the need to build costly mining setups, you just lock up your stacks.
And earn the BTC from STX Miners, earning stacks for their BTC. Kind of cool wouldn’t you say… So if any of this, tingles your crypto senses, and you wanna get prepared for mainnet coming January 14th, all links for stacks, is included in the description. So now back to the big question… Flare or XRP? Well personally, I would pick the token which is decentralized out the gate, doesn’t have Ripple tied directly to it. Because me thinks XRP is gonna lose, if they don’t choose to settle come there next chance in February. Why? Well go back to what Brad Said in that blog “Chris and I had the option to settle separately. We could do that, and it would all be behind us. NOT happening. That’s how confident Chris and I are that we are right. We will aggressively fight” They are trying to stick a middle finger up to the SEC. And if you look back in history of those that have tried. They lose EVERYtime.
Richer, more powerful people have tried, and they lose. Elon Musk ring a bell? He tried to fight them…. but ended up settling… Brad, you may think you will win, you may think your in the right…but if they want to get you they will. So In my opinion, they will lose, unless there’s some conspiracy going on to set them up to WIN & take over as ruler of crypto. I doubt that…So Flare, it is the next XRP. Cheers I’ll see you next time!.