WrathofKahneman (WOK), a prominent figure within the XRP community, recently stressed that XRP proponents are not investors in the XRP Ledger (XRPL) just because they hold XRP tokens.
WOK made this remark in a post today amid recent concerns about a perceived delay in approving the proposed Automated Market Maker (AMM) feature on the XRPL.
Hot take: owning #XRP does not make you an investor in the network, formally. It makes you an investor in a token on exchanges. There's no formal relationship btwn the value of your token & network infra. To think otherwise makes it a security & we've been down this road before.*
— WrathofKahneman ? (@WKahneman) October 24, 2023
A Reality Check
In his statement, the community influencer emphasized that holding XRP does not automatically make an individual a formal investor in the XRPL. According to WOK, being an XRP holder merely makes someone an investor in a token traded on crypto exchanges.
He noted that the value of the token and the XRP Ledger’s infrastructure have no formal relationship. WOK argued that any comment that tries to tie XRP’s value to the XRP Ledger would inadvertently be classifying XRP as a security – an idea that all XRP holders oppose.
WOK’s statement triggered mixed reactions within the community. On-chain researcher Anderson concurred with this view, pointing out that this perspective could potentially lead the U.S. Securities and Exchange Commission (SEC) to label Proof of Stake (PoS) coins as securities.
Correct but seems like the SEC could then make the case that Proof of Stake coins are securities.
— Anders ??? (@X__Anderson) October 24, 2023
WOK acknowledged this possibility, stating that SEC Chair Gensler had expressed these sentiments earlier. The influencer further hinted that ETH might fall under the same scrutiny.
An XRP community member highlighted the crucial liquidity that XRP holders provide to the XRPL, stressing the importance of their voices being heard. WOK empathized with this sentiment, noting that they indeed contributed to liquidity. However, he iterated that no formal agreement grants them governance or influence.Â
Responding to another community member, WOK further stressed that, per the XRPL documentation, XRP is an issued asset, not a coin. He made his point clear: the XRPL does not function as a PoS network where holding tokens equates to governance over the network.
The XRP Ledger (XRPL) AMM
The backdrop for this discourse is the growing concern among some XRP community members who feel that XRPL validators are unduly delaying a decision on approving the upcoming Automated Market Maker (AMM) feature, which is currently up for voting.
These delays have prompted a segment of the community to assert their right to influence XRPL’s governance, citing their status as XRP investors. WOK’s comments effectively challenge this notion. He contends that the XRPL fundamentally differs from PoS networks, where token ownership could translate into governance authority.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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