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Mike Dudas @mdudas
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🤔 @Ripple & $XRP
2013: "Ripple Labs created 100 billion XRP within the Ripple network, and that amount will never increase." web.archive.org/web/2014032702…
2018: "Ripple the company didn’t create XRP; 100 billion XRP was created before the company was formed" ripple.com/insights/top-9…
Well, lookie here. Seems as if @Ripple may have some explaining to do about some old web materials they tried to scrub re: $XRP...

web.archive.org/web/2014032702…

(more to come)
"Ripple Labs is the creator of @Ripple. We developed the protocol... 100 billion $XRP was created with the Ripple protocol... The company will retain a portion with the hope of creating a robust and liquid marketplace in order to monetize its only asset"
web.archive.org/web/2014052513…
There's more. Lot's more. Now the key question about @Ripple's role in creating and controlling the supply of $XRP: does this mean that $XRP is an unregistered security? More to come on that front soon. For now, turkey-induced sleep...
Remember that time in 2013 when @Ripple trademarked $XRP? trademarks.justia.com/859/35/xrp-859…
Or that time they told @NYDFS: "The Ripple protocol enables payment in any fiat or virtual currency, including the math-based virtual currency developed by @Ripple Labs, $XRP."

You know, before they hired @BenLawsky, the guy the letter was addressed to:

ripple.com/files/nydf_com…
And let's not pretend that the creation of $XRP (Ripples) was smooth. It was not, as we can see from this 2014 letter from @krakenfx CEO @jespow, one of the earliest members of the team and former Board member. docs.google.com/file/d/0B_ECG6…
2016: "In addition to being the digital currency forerunner that issues and runs $XRP, a digital currency trailing only bitcoin in popularity, @Ripple is a developer and provider of Ripple Connect for major foreign financial institutions." sbigroup.co.jp/english/news/p…
Finally, in 2017, @sbigroup compares the "unspecified majority" that mines $BTC to the clearly defined @Ripple, which develops $XRP.

SBI Group is an 11% owner of Ripple.

web.archive.org/web/2017071222…
2018: Let the revisionist history begin.

[Note: It is no longer cool for a centralized entity / company such as @Ripple to be associated with issuance of a cryptocurrency such as $XRP, as that may cause the @SEC_Enforcement team to become interested.]

ripple.com/insights/diffe…
In 2018, @bgarlinghouse, the CEO of @Ripple, embarks on a media tour: "From an ownership POV, owning XRP doesn’t give you any ownership of Ripple equity... Ultimately as we just talked about, XRP has a lot of utility.”

He is persuasive. Retail buys $XRP.

cnbc.com/video/2018/06/…
March 2018: @Ripple hires @CoryTV away from Bloomberg to share a very important message: "We absolutely are not a security." cnbc.com/2018/04/12/rip…
One more time for good measure: @bgarlinghouse lists the reasons why $XRP is not a security in a @Ripple conference appearance in June 2018.

That's all for tonight folks.

We will explore the Howey Test and its application to Ripple and $XRP very soon.

finance.yahoo.com/news/ripple-ce…
Now, to the key question: if @Ripple Labs created $XRP, is $XRP a security?

Ripple's management emphatically says no, $XRP is not a security.

However, simply saying it doesn't make it so.

Fortunately, a framework called the Howey Test exists.

theblockcrypto.com/tiny/icos-arbi…
It is an Investment of Money:

Per @Ripple's website, individuals can purchase $XRP on various cryptoasset exchanges with either fiat currency or cryptoassets.

Investments of both fiat currency and cryptoassets meet the first prong of the Howey Test.

ripple.com/xrp/buy-xrp/
It is an Investment of Money:

"XRP trades freely against other currencies within the network, just like EUR trades freely against USD.

Like gold or paper dollars, XRP has no intrinsic value — it is only worth what someone else is willing to pay for it."

web.archive.org/web/2015042209…
There is an Expectation of Profits From the Investment:

"Anyone who holds XRP, particularly those who are contractually prohibited from dumping it, shares our interest in seeing the price appreciate over the long term.” ~ @Ripple CTO @JoelKatz

bitcointalk.org/index.php?topi…
There is an Expectation of Profits From the Investment:

"@Ripple Labs plans to retain 25% of all $XRP issued to fund operations (and hopefully turn a profit)... as demand for $XRP grows, the value of $XRP should appreciate."

assets.ctfassets.net/sdlntm3tthp6/r…
There is an Expectation of Profits From the Investment:

"Anyone who gets $XRP from us as part of some deal with a lockup has their incentives aligned with ours. They want the long-term price of $XRP to go up too." ~ @Ripple CTO @JoelKatz

web.archive.org/web/2018030115…
The Investment of Money Is In A Common Enterprise:

"If the @Ripple protocol becomes widely adopted, demand for $XRP may increase, leading to an increase in price. Unlike info protocols like HTTP or SMTP, investors can directly own a stake in Ripple."

assets.ctfassets.net/sdlntm3tthp6/r…
The Investment of Money Is In A Common Enterprise:

"I don't think it's likely $XRP would succeed w/o [@Ripple], though it's possible. I do think it's possible for us to succeed without XRP succeeding, as we do have other sources of revenue." ~ @JoelKatz

web.archive.org/web/2016072621…
The Investment of Money Is In A Common Enterprise:

When pressed on what could cause $XRP to go to $0, @JoelKatz highlights 5 factors related to @Ripple Labs, implying the price of $XRP is strongly tied to Ripple Labs’ operations, development & strategy.

reddit.com/r/Ripple/comme…
Any profit comes from the efforts of a promoter or third party:

"[@Ripple] will engage in distribution strategies that we expect will result in a stable or strengthening $XRP exchange rate against other currencies."

web.archive.org/web/2014101715…
Any profit comes from the efforts of a promoter or third party:

"As a corporation, [@Ripple] are legally obligated to maximize shareholder value. With our current business model, that means acting to increase the value and liquidity of $XRP" ~ @JoelKatz

bitcointalk.org/index.php?topi…
Related: from @SEC_News's William Hinman in early November...

theblockcrypto.com/tiny/sec-will-…
Any profit comes from the efforts of a promoter or third party:

"Despite... having influence over almost every aspect of the system, with a phenomenal team, a warchest with a notional value in the tens of billions, and every incentive to make it happen"

xrpchat.com/topic/14047-fo…
Any profit comes from the efforts of a promoter or third party:

To protect against $XRP price risk, @Ripple Labs uses legally-binding agreements and escrow functionality to protect against large sell offs of XRP tokens.

ripple.com/files/rl_csbs_…
Any profit comes from the efforts of a promoter or third party:

"I think our incentives are very well aligned, you know, that for @Ripple Labs to do well we have to do a very good job in protecting the value of $XRP." ~ @chrislarsensf

[Quote at 24:00]

Any profit comes from the efforts of a promoter or third party:

Over the past 2 years, @Ripple's licensed MSB subsidiary has sold > $230M of $XRP to private institutions and > $387M of $XRP to retail investors, raising $617M in investment capital.

ripple.com/insights/q3-20…
Disclaimer: I leave it to you, the reader, to draw your own conclusions from the set of facts presented above.

I am not a lawyer, nor am I rendering an opinion on @Ripple or $XRP. I am merely presenting facts, building on the work of @TheBlock__'s team and many others before.
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