Outspoken bitcoin hawk Max Keizer made a controversial claim, calling Ripple a “Ponzi scheme” and adding that millions of dollars spent by its CEO, Brad Garlinghouse, had failed to save the blockchain company.
Bitcoin Supporter Bombs Ripple, Claims It’s a ‘Ponzi Scheme’
Keizer used examples from Wall Street and the banking industry to illustrate the importance of power and money. He cited the views of Jamie Dimon of JPMorgan who believed that Garlinghouse’s large financial resources would not be sufficient to compete against the power of the federal government and powerful individuals.
According to reports, Ripple has set aside more than $100 million to pay legal expenses related to its ongoing dispute with the US Securities and Exchange Commission (SEC).
On the other hand, Keizer believes that Bitcoin will remain strong and that the fate of XRP, the parent currency of the XRP Ledger and the currency that Ripple uses in some of its products, is already decided.
Deaton responds to the prompts
John Deaton, a well-known lawyer who supports XRP, has challenged Keiser’s claims about the cryptocurrency.
Deaton argued that the SEC could not destroy the XRPL coin, noting that the regulator had previously discussed whether or not bitcoin should be considered a security.
He also stated that even if it turns out that Ripple did something wrong, XRP will still be successful because the regulatory designation does not change its fundamental nature.
Deaton criticized the SEC for favoring Ethereum (ETH) over other cryptocurrencies due to pressure from self-confident investors. He believes in a fair system that allows innovative technologies to succeed.
The legal battle between Ripple and the SEC has made the future of XRP uncertain. The different opinions of Keizer and Deaton highlight the regulatory challenges faced by Ripple, XRP, and the cryptocurrency industry as a whole.