David Schwartz, Ripple’s chief technical officer, did not take too kindly to Ethereum co-founder Vitalik Buterin’s dig at XRP. In a discussion that started around the recent $30,000 limit imposed by the Ontario crypto exchange on altcoin purchases excluding Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH).
Buterin, in a quoted tweet response, praised the Ethereum community’s pushback against regulations that privilege ETH over other legal cryptocurrencies. David Hoffman, the founder of decentralized media and education platform Bankless.eth responded to Buterin and said he wouldn’t mind if they limited XRP.
XRP already lost its right to protection when they tried to throw us under the bus as “Chinese controlled” imo:https://t.co/t6cbMtjsEV
– vitalik.eth (@VitalikButerin) August 17, 2022
Buterin joined the XRP bashing claiming they lost their right to protection when they tried to “throw us under the bus as China-controlled”. Buterin’s response created a storm among XRP followers on Twitter, and the debate was later joined by Ripple CTO David Schwartz himself.
Buterin alluded to Ripple’s defense in their ongoing legal battle against the US Securities and Exchange Commission (SEC), where they claimed that XRP should not be considered a security because Ethereum and Bitcoin are similar in nature and even called the top two cryptocurrencies coins as Chinese controlled. Ripple is fighting a securities lawsuit from the SEC over the unlicensed sale and issuance of XRP tokens.
Schwartz reiterated Ripple’s earlier claims of ETH and BTC as security and likened miners in the ecosystem to eBay shareholders. He said:
“I think it’s perfectly fair to analogize miners in PoW systems to shareholders in companies. Just as eBay shareholders profit from the residual friction between buyers and sellers that eBay doesn’t eliminate, so do ETH and BTC miners.”
Schwartz ended his tweet with a question to Buterin, asking him whether the security debate should be handled by the government or the market.
Do you think this debate should be settled by the government or the market, @VitalikButerin? This quote was not pulled from some attempt by Ripple to get the government to regulate ETH, was it?
— (@JoelKatz) August 18, 2022
The security status of Ethereum has become a hot topic during the ongoing litigation, with Ripple claiming that the SEC has a clear bias against them and it has favored Ethereum. In an interview in 2021, Ripple CEO Brad Garlinghouse claimed that the SEC helped Ethereum overtake XRP as the No.2 crypto.
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The security status of cryptocurrencies has been a long-standing debate due to a lack of regulatory guidelines. The majority of regulators around the world consider Bitcoin as an asset, while there is still an ongoing debate about the status of Ethereum due to the pre-mining and initial coin offerings (ICO).