- John Deaton debates XRP investors’ awareness of Ripple’s involvement.
- Deaton argues that if Ripple directly sold XRP to investors, there is a valid argument for considering XRP as a security.
- The discussion reveals varying perspectives on the importance of investor research.
A recent exchange between prominent XRP lawyer John Deaton and crypto enthusiasts on Twitter has ignited a spirited debate surrounding the level of awareness XRP investors had regarding Ripple’s involvement.
The conversation unfolded when Deaton responded to a crypto enthusiast who cited Ripple’s Board of Directors’ background as a critical reason for his investment in XRP.
While Deaton touched upon the intricacies of the Howey test, he argued that if Ripple directly sold XRP to investors, there is a valid argument for XRP to be considered a security.
However, Deaton emphasized that this argument applied specifically to investors who purchased XRP directly from Ripple and had contractual agreements with the company.
He distinguished this situation from those who acquired XRP through secondary markets or for non-investment purposes, such as utilizing DEX or transferring funds on the XRP ledger.
The discussion expanded further when Deaton responded to lawyer Jesse Hynes, who expressed surprise and concern over the messages he received from individuals who admitted to investing in XRP without conducting thorough research.
Deaton responded by sharing his experience, stating that based on his interactions with thousands of XRP holders, a significant majority were unaware of Ripple as a company when they acquired XRP.
He even mentioned that some developers who built on the XRP Ledger were unaware of Ripple’s existence during their initial XRP purchases.
The debate over XRP investors’ level of awareness about Ripple’s involvement has brought to light varying perspectives within the crypto community.
While some argue that it is essential for investors to conduct comprehensive research before investing in any digital asset, others contend that market participants should not be held accountable for being unaware of a company’s involvement when acquiring a specific coin.
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