- Crypto Rating Council claims LTC & BTC do not use securities-like language
- Stellar’s burn draws it closer to security region – Charlie Lee
Sometime in October, some famous exchange platform of the cryptocurrency industry such as Kraken, Bittrex, Coinbase, and Poloniex partnered with Grayscale, Anchorage, and Genesis Trading to create the crypto Rating Council. The venture was established to rate cryptocurrencies and has recently hinted that Ripple’s native token XRP uses “securities-like language,” while the likes of Litecoin and Bitcoin do not.
Several months are the launch of the venture, the latest episode of Magical Crypto Friends saw prominent people like Riccardo Spagni, the former lead maintainer of Monero, Blockstream CSO Samson, Litecoin CEO Charlie Lee, and Whale Panda linked up to discuss the same issue.
Though many people believe that the Rating Council was established to influence the SEC, Spagni aka fluffyony stated that since the SEC does not have the manpower to value every project, in place of it, the council could be used by the SEC as a pointer. He stated: “It’s just that this gives them like a shortlist of things to work with, like cool when we’re going to shelve that for now and looking at later because these reputable companies with reputable lawyers have said that this probably isn’t a security. So you know, let’s mark it as low priority.”
Though, Mow claims that the council is not that “meaningful” and has no influence, as they hardly give out information. The SEC could still pursue cryptocurrencies even if the council states that it is not a security, he explained.
Stellar’s burn draws it closer to security region – Charlie Lee
Also, the Ethereum community has been looking forward to the shift of the network from Proof-of-Work through Ethereum 2.0. Commenting on this Mow threw the question of the council changing its position on if Ethereum is a security or not. Mow went thus: “So when Ethereum 2.0 comes up, does that bump up Ethereum’s rating to more of security because SEC only said Ethereum 1.0 was not a security.”
Another development that attracted the eye of the industry was Stellar damaging 50% of its supply. Charlie Lee, who has allegedly calculated the same, emphasized the fact that the Stellar Development Foundation burnt the 50 million coins that they were supposed to be distributing. This was followed shortly by the Foundation burning 5 billion of their coins. So far, this has led them to successfully increase the percentage of the total coins from 16% to 24%, Lee clarified.
Litecoin (LTC) Price Today – LTC / USD
He further added, “So it’s kind of quite ridiculous that they can just decide to do that. It’s similar to if a coin decided to reduce mining. Right. Rich people who already own a lot of coins today and they just reduced admission in the future.”
Mow concluded the episode by hinting out that this would shift the coin closer to the security region, with Lee seconding Mow’s proclamation.