Saturday, April 17, 2021

Crypto Enthusiast Makes a Case on Why Ethereum (ETH) Should Be Termed as Security like XRP

A supposed XRP community member, identified on Twitter as STUARTXRP, has exclusively claimed that Ethereum (ETH), the second-largest cryptocurrency by market cap supposed to be treated like Ripple and XRP by the U.S. Securities and Exchange Commission (SEC).

Recall that SEC filed a lawsuit against Ripple, Chris Larsen, and Brad Garlinghouse, for the sale of over $1.3 billion worth of XRP since 2013.

Read Also: Vitalik Buterin Is Playing a Long Game, I’m Constantly Impressed with Him –Michael Novogratz

Why SEC Should Treat Ethereum (ETH) As a Security like XRP

According to STUARTXRP in a series of tweets, “If the SEC thinks XRP is a security then ETH looks like a security. Vitalik Buterin the creator of ETH. When ETH launched 12 million ETH were created for the six founders and the developers of the Ethereum Foundation. And 60 million ETH were pre-mined for participants to buy.”

He further stated that some experts claim that the co-creator of Ethereum (ETH), Vitalik Buterin, currently holds around 352,000 ETH and quoted Vitalik as saying that “I did get the Ethereum Foundation to sell 70,000 ETH like basically at the top and that’s doubled our runway now.”

STUARTXRP also claimed that Ethereum Foundation made relatively $100 million from the sale of ETH during the bull cycle of 2017 to January 2018.

Read Also: Vitalik Buterin Shares Roadmap of What Comes Next After Beacon Chain Rollout

He further argued that Buterin has enriched himself over the years with a behemoth salary scale from the Ethereum Foundation:

“Vitalik has commented that he has earned a six-figure salary from the Ethereum Foundation five years ago which was $144,000 per year…

“With other founders having a significantly larger salary over $200,000+. Ethereum Foundation have helped ETH grow having a big impact. Ethereum Foundation was holding 0.6 percent of all ETH, as well as some reserves of cash.”

Purchase of 500,000 ETH by Mike Novogratz

STUARTXRP also wrote about how some individuals purchased a huge sum of ETH based on speculations. He referenced the purchase of 500,000 ETH made by Galaxy Digital’s Mike Novogratz in 2015 as part of what makes ETH a security if XRP is deemed as such by SEC.

He added that Buterin appreciated Novogratz for the voluminous purchase of ETH via Twitter on 17th November 2020, which implies that he was expecting a return from the huge investment.

Read Also: Mike Novogratz Makes U-Turn about Ethereum Investment, Says ETH Is Going Much Higher

Conclusively, the crypto enthusiast stated that without Ethereum Foundation, ETH wouldn’t have attained this level of success. He also said Ethereum Foundation uses part of its ETH holdings to fund its venture just like Ripple does.


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Tobi Loba
Tobi-Loba is a creative and an award-winning writer with over 5 million readers from all over the world. She has B.A in English and Literature from a reputable University and currently studying for her M.A in the same field. She recently became a contributor at Herald Sheets in order to satisfy her thirst in reporting crypto and blockchain occurrences, the interest she built over the years.

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