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- Ashley Prosper, an XRP community member, highlighted factors from the SEC vs. Ripple lawsuit that might affect Ethereum.
- The Ripple lawsuit emphasized the nature of XRP’s blind sales and lack of buyer knowledge.
- Ripple’s programmatic sales were less than 1% of global XRP trading.
- Discussions around Ethereum’s early sales are growing, with concerns about concealed major investments.
Ethereum’s early sales are making waves in the cryptocurrency community, drawing insights from recent SEC vs. Ripple lawsuit developments. Ashley Prosper, a prominent member of the XRP community, has shed light on five elements derived from the Ripple lawsuit, suggesting potential repercussions for Ethereum should the SEC decide to delve deeper into its past ICO dealings.
Ethereum’s Spotlight: Ripple’s Court Insights
The court’s findings in the Ripple lawsuit emphasized several critical factors regarding Ripple’s programmatic sales of XRP:
- The nature of these sales was likened to blind bid/ask transactions, with buyers unaware if their funds were directed to the blockchain firm.
- Such sales accounted for a mere sliver, less than 1%, of the global XRP trading activity.
- Ripple, during these transactions, did not make any commitments or offers, primarily because the company lacked knowledge of the identities of those buying XRP on exchanges.
- A significant number of these buyers remained oblivious to Ripple’s very existence.
- These XRP sales didn’t follow any contracts with clauses like lockup provisions or explicit statements of purpose.
Ethereum’s Sales: A Subject of Contention
Adding fuel to the Ethereum sales discourse was former Ethereum adviser Steven Nerayoff. He presented the inherent difficulty in pinpointing the exact number of Ethereum ICO buyers. His insights stirred debates and led to suspicions that some major players, or “whales”, could be concealing their Ethereum positions.
The juxtaposition of the Ripple lawsuit’s findings with Ethereum’s historical sales opens a Pandora’s box of questions and potential regulatory scrutiny. Should the SEC choose to probe Ethereum’s past based on these Ripple precedents, Ethereum might find itself in a regulatory maze, raising concerns for its investors and stakeholders in the crypto industry.
