- Adam Back claimed that Ripple (XRP) is a ridiculously pre-mined scam with corporate marketing.
- He further said that it is surprising that the United States SEC has not shut down the company with prejudice yet.
In a recent tweet by Adam Back, he claimed that Ripple (XRP) is a ridiculously pre-mined scam with corporate marketing. He further said that it is surprising that the United States Securities and Exchange Commission has not shut down the company with prejudice yet.
XRP is a ridicuoulsly pre-mined scam with corp marketing. Only surprising thing is that SEC hasn't shut it down with prejudice yet.
— Adam Back (@adam3us) July 3, 2020
Adam Back is a major cryptocurrency enthusiast, cryptographer, crypto-hacker and is the founder as well as the CEO of Blockstream. When it comes to Bitcoin and blockchain technology Blockstream considers itself a global leader. Bach is also the inventor of Hashcash which is used in Bitcoin mining.
Back Had Accused Ripple’s CEO Of Stacking Sats
It seems like Back has always shared Bitter views on Ripple. Previously, at the beginning of the year he had accused Ripple’s CEO Brad Garlinghouse of cunningly stacking Bitcoinwhile dumping the pre-mined XRP on the retail investors.
Nevertheless, Garlinghouse was actually affecting XRP’s price dumping XRP tokens as a part of the monthly deeds that release as much as $1 billion XRP. Following which the Ripple CEO had said that Ripple cannot control the price of XRP as much as the whales can.
Ripple is Pump and Dump Scheme
However the big question still remains unanswered. Is Ripple really a scam as claimed by Adam Back?
Firstly we need to know that Ripple is not mainly a pump and dump scheme because it has to undergo various different activities in order to increase the value of its XRP cryptocurrency. This is unlikely for any pump and dump scheme because they do not normally undergo various activities.
Ripple had issued token XRP which is primarily an open source technology. It is shady because the highest stakeholder of the XRP is Ripple owning over half the number of tokens available.
Often it has been reported that Ripple is using its free stakes to pretend that customers are actually paying them when it is the other way round.
Further, Ripple’s XRP is not a security. Because, in future if it happens that Ripple shuts down, the XRP will continue to operate independently because it is an open source protocol. Some firms conducted pilot tests on Ripple which ended nowhere. Another company in Spain released its product which promised instant fund transfers but it did not work.
Despite Ripple paying companies to conduct viable pilots, people sometimes wonder why so many people are still using XRP tokens. And why it is often compared to Bitcoin. This is because it pumps up the value of the XRP token.