New evidence suggests that XRP could be deemed a security

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A document resurfaced on the internet providing concise evidence that Ripple created XRP and that the firm is selling the token in excess of need for profit.

Ripple allegedly "Blurred differences between Ripple's enterprise solutions and XRP to further drive demand," and "Paid exchanges to list XRP, limiting the supply of XRP to drive demand."

Now, evidence resurfaced supporting the argument that Ripple was the main entity behind the development of XRP. Additionally, the data suggests that the company and its members are selling this cryptocurrency for the purpose of enriching themselves.

Based on Hinman's perspective, it seems like XRP meets all the characteristics to be deemed a security.

"A million dollars worth of XRP will always cost a million dollars. But the higher the price of XRP, the more money Ripple makes by selling XRP, the more money Ripple is worth, the more power Ripple has to incentivize partners, and soon."

"Ripple will almost certainly be the largest holder of XRP for the foreseeable future. For every penny the price of XRP goes up, the notional value of Ripple's XRP goes up by six hundred million dollars Ripple makes money by selling software to banks. But how many banks do you think Ripple would have to close to make six hundred million dollars in license/support fees? That would equal the value of a sustained one cent increase in the price of XRP.".

The exponential price appreciation that XRP experienced over the last few years, has indeed helped the Ripple team increase the value of their "Stash." Co-founder Jed McCaleb, who is no longer at Ripple, alone reportedly sells half a million XRP on a daily basis, according to a Bloomberg report.

David Schwartz sold 2.8 million XRP worth roughly $810,000 in 2019 and Brad Garlinghouse, Ripple's CEO, appears to have sold 23 million XRP in 2017.

With all of these factors in mind, investors must keep a precautionary approach to XRP. It is important to consider Ripple's business model, team, and product to decide whether the firm acts in XRP holders' best interests before investing in this cryptocurrency.

Only time will tell whether XRP will be deemed a security by the U.S. Securities and Exchange Commission.

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