Binance CEO Insists XRP is Not A Security and Bullish on its User Base
Of late, as Binance LaunchPad host another token sale for Celer Network (CELR), Binance Coin (BNB) reacted positively, gaining 20% and reaches the seventh position on the cryptocurrency ranking list as of press time. Binance CEO Changpeng Zhao, better know as CZ, held his second Ask Me Anything (AMA) session on Periscope to discuss several hot topics with crypto enthusiasts.
Near the end of this AMA session, CZ was asked whether he had “any announcement for XRP”. The CEO stated that Binance does not believe that XRP is a security and would continue to list the token until it has been proven “guilty”. He replied:
“People are aware that there is a lawsuit against XRP on whether they are a security or not. Our judgement is that they are not. And until it’s proven that they are, we listed them, and luckily we dragged other exchanges to list them. That’s good thing… Just because there’s a lawsuit doesn’t mean they are guilty. So, we applied our judgement there, and we’re always very supportive of XRP. There’s a lot of guys who complain that it’s overly centralized, but look, the market votes with their feet, and XRP is one of the largest market cap coins, and it’s like that for a reason.”
The CEO also argues that the lawsuit is against the Ripple company, not the token itself. Which means there is no directly correlated with XRP.
In addition, the XRP has also been criticized for “overly centralized”. To this regard, CZ believes that “one of the best ways to identify projects with value is the user base”. Without a doubt, the third largest cryptocurrency in market cap has an extremely large and passionate user base.
The court case may take years. But if XRP is ruled as a security, it would seriously hurt a lot of US users, and to a certain extent, other users around the world too. It certainly doesn't look like a security to me, but that's just one person's opinion.
— CZ Binance (@cz_binance) December 12, 2018
This can also be the main reason that Binance firmly supports the XRP, and even the California-headquartered crypto exchange Coinbase has finally decided to list XRP on Coinbase Pro on February 25. The user base is the core factor in the crypto world.
Nevertheless, Zhao also tweeted that XPR may also be a hot potato to the US court, it would not be ruled as a security cursorily because it would seriously hurt a lot of US investors.