“RIPPLE WILL DEFINITELY LOSE” Says Crypto Exec. In ARGUMENT With Fmr. Ripple Employee

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Hello this is Matt on the moon family Said Dan Channel and here's a headline From you today Ripple will definitely Lose against SEC crypto executive says Now this particular executive I Highlighted on my channel it's the Beginning part of this year and he Literally believes not just that Ripple Will quote unquote definitely lose Against the SEC he also States has Stayed in the past I'll show you in a Second here that xrp is a security which Those are two different claims he almost Seems gleeful he seems so confident in This and part of the reason I wanted to Highlight this because look you know me I'm Mr positive when it comes to Long-term viability of xrp for but I'm Grounded in reality about it it's not Just sniffing a bunch of hope you know Opening how do they do it snort it how Do people take the Opium I don't know I'm not doing it though I live in Reality I'm grounded in reality but it's Okay to be excited and I also think that If you're grounded in reality you should Be willing and able and happy to address The naysayers out there and this crypto Executive is definitely one of the Naysayers he's he's running his own Crypto project with his own Cryptocurrency mind you and this guy Uh he is frankly so ignorant on Securities laws that I kind of feel

Sorry for him in a way And check this out I'll show you the Specifics but know this at the outset He's intentionally engaging with the SEC Voluntarily and if you're already kind Of rolled your eyes or chuckled right Now then it's because you know why the People that do that those are the people The SEC is most likely to sue so when I Found out that he was doing that and He's so confident he's got this good Relationship with the SEC I'm like oh Man you're next Well history shows us we should expect Him to be next anyway right But before going further I do want to be Clear I do not have a legal or financial Background of any kind I'm not offering Legal or financial advice And you definitely should not buy Yourself anything because of anything I Say or right I'm just an Enthusiast who Enjoys making YouTube videos about Crypto related topics but just as a Hobby and just for fun and who am I Talking about none other than Gene Hoffman the CEO of chia and so the the Chia coin is um the little ticker symbol Is xch uh here's on live coin watch and Uh the price chart showing all of its Activity since I guess it's Inception I Don't pretend to know anything about the Coin so I'm not for or against it Um I do not want him to be attacked by

The SEC so don't think that I'm taking Glee in that I'm just like man It would be better if she would just Inform himself so he understands agree To what she's not only risking Everything that he's doing in his Livelihood but also the degree to which The entire world of crypto is under Assault but here you can see this coin Was once worth 1714 bucks and like a Bunch of crypto after the 2021 Euphoria It's way down to for 38.84 cents again Down from about 1700 bucks so that's the Coin again I'm not going to say anything Good or bad about it I haven't Researched it I frankly don't care right Now I care about the assertions that He's making about Ripple and what are The assertions he's making about xrp and So here's a tweet from January 1st where He wrote Bitcoin Litecoin Doge xch so That's his coin he says not securities Xrp ftt Solana avex cardano always have It so there you go right there it's on Your screen back then beginning of this Year xrp itself is a security well what Has this perspective changed on anything Though because we just found out just a Couple days ago That Gary ginsler's perspective is that Every cryptocurrency that isn't Bitcoin Is a security every single one of them That is the perspective he has shared And so there's somebody named Aaron who

Tagged Gene Hoffman the CEO of chia And he wrote hygiene what do you think About it I think Chia is better than Bitcoin and so Gene Hoffman who thinks That xrp is a security did respond and Said xch is not a security we're going Into register Chia equity which is the Obvious way to be legal that everyone Else just doesn't want to do so let's Pause to note that's a rather Interesting approach he's not going to Try to register his Chia coin the xch Coin he's going in to register Chia Equity And he says that that's obvious so he Says if you register equity in a company And then separately you have a coin in His fantasy landmind now you're just not Going to be attacked by the SEC Uh well this is where former Ripple Employee Matt Hamilton jumps in and Former Ripple employee Matt Hamilton Responded with the following you would Think so but it didn't stop the SEC Going after a Ripple uh and no it Certainly did not as you are probably Well aware to this point you actually if You're a a uh What's the word I'm looking for the Obvious word It's a sophisticated investor but they Call it a quality the qualification to Be I hate it when I have a like you ever

Have this happen we all do we're like You're you're thinking of something That's like on the edge of your brain You can't think of like a very basic Word it's like if you forget the word Like fork or spoon it's that stupid It's like like a couple cylinders not Fire in here right now Um but uh it's not certified investor I Know some of you are screaming it's this Word I I know I know I feel it I feel I Wish it was in my brain right now but um But it's it's uh what you have to do to Be uh considered to be a sophisticated Investor and you know you have to have At least a net worth of a million Dollars not including your primary Residence or you have to have made 250 000 I believe the figure is for the Previous two years to show that you're a Sophisticated investor and uh and then You you can go ahead and purchase uh Shares of Ripple if you so choose on Secondary markets so that's what's being Discussed there that's obviously Completely separate uh from you know Purchasing xrp And so again Matt Hamilton said you Would think so but it didn't stop the SEC going after Ripple which I think is Not surprising because they just want to Attack crypto regardless of whether or Not Ripple was even offering uh any sort Of stock because Ripple doesn't have to

Offer stock but but they do you know the People that are qualified and uh and it Doesn't stop the SEC at all I don't Think it would better them but Gene Hoffman jumps in and says they sold xrp Before they registered Ripple stock And that was the mistake Um and so that obviously doesn't make Sense as Matt Hamilton points out he Says how could you register stock in a Company that didn't exist at the time Good question but again Gene Hoffman he Seems to just have opinions about stuff That he hasn't sufficiently researched But that's why I have a concern like He's a CEO of this firm and he seems to Be taking a rather haphazard Lackadaisical approach uh to you know Clear if you look at his understanding And it gets worse as it'll go further Through the video it really does get Worse I don't think things are going to go Well for him in All likelihood And then uh so then Matt Hamilton wrote To Gene and said Um or James said yes so it doesn't Matter if you don't yeah this is where It gets extra interesting so Gene Hoffman wrote to Manhattan says doesn't Matter if you don't sell the token it Can't be a security now uh I I will Acknowledge I my understanding Previously before especially before all

The secv Ripple stuff my understanding Was that I mean even during much of much Of the last two years is that if Ripple Had not sold xrp that the SEC wouldn't Have anything to go and obviously if They're not selling how could you you Know go against for sale of a Unregistered security if they didn't Sell anything and what I didn't know at The time and I still think this is Ridiculous that this is the case but What I didn't realize at the time that You can be guilty of Securities Infractions even if you don't sell Anything because the SEC can argue that What you have done your behavior Constitutes an offer and even just Putting forth an offer is actually Illegal and I didn't know that for most Of the last couple years that I've been Covering this it just wasn't made clear To me I didn't see it covered but then I Highlight once I found that out I Mentioned on the on the channel before Um so again no I don't pretend to know Everything I'm learning along the way Just like everybody else but um but he Doesn't seem to know that even if you Don't sell You know you can still actually actually Be in trouble Uh and so Matt Hamilton responded though And he said the Chia company doesn't own Any xch question mark and Gene Hoffman

Wrote back and said it does own xch It has never sold xch and all the Trading xch was from Farmers farming and Then Matt Hamilton responded but it has Given xchoa no for example employee Compensation so this is Matt Hamilton Asking if they've given it away in any Sort of capacity whatsoever although Again We now know that even if it's not sold Even if there's what the SEC would argue Is an offer you can still be in legal Hot water with the SEC And then Gene Hoffman responded no all The xch the company has sits on chain Doing absolutely nothing until after we Have a registration statement effective For our Equity being a normal Delaware Company with HQ in the Bay Area isn't a Pretty time tested process so let's Pause a note here for some reason he has It in his head that registering Equity With the company will protect them from Not having the SEC going after him for This Chia coin the xch coin but if you Look at all the arguments that the SEC Has thrown forth at Ripple it becomes Very clear that that's that's not really What they're talking about look at all The BS arguments about the asset itself Being a security and all the other stuff That I've been covering for over two Years look at the assertions made in the Secv library case so if he thinks this

Is going to protect him he's just he's Living in a fantasy land and it's not That I want the SEC to go after this guy I just think he doesn't have a freaking Clue what he's talking about and Somebody he better help him from his Legal team I hope he has a legal team Because this is not solid stuff here This is not good this is not safe for Him you know I assume at some point Where I will not be surprised anyway if We see a headline where Gene Hoffman of Chia gets sued for XYZ Reason by the SEC I will not be the least bit surprised to See that he should be pushing back Against all this but what he's doing You'll see as I go a little bit further In this video he's trying to align Himself with the SEC you know looking For a good essentially a good favor Right Okay who else has done that well Ripple Did that and of course the difference Between Ripple wasn't pushing back Against other coins or saying other Coins are necessarily Securities or Stuff like that but but Ripple took this Approach hey uh we're trying to do Everything by the book we're Ripple a Library did that Dragon chain did that The people these entity that made them Targets How the hell has this guy this Chia Jean Hoffman guy not drawn upon past

Experience of others to learn that this Is a very bad idea And then Matt Hamilton responds and says Fair enough you might want to keep a Close eye on the Ripple case No doubt you are as the SEC are trying To argue an investment contract is not Needed and secondary market sales also Secures and Matt Hamilton is absolutely Correct there they are arguing that Every single transaction it's it's What's become known as the embodiment Theory that xrp embodies all of the Efforts that ripples promising allegedly To individuals and that's the reason That they're arguing people are Investing so on and so forth and as far As an investment contract that's another Thing the sec's arguing that no actual Contract is required now that goes Against over 70 years of case law and Precedent so that's a nonsense novel Theory that they're trying to push for It's just garbage Theory Uh but but man animals absolutely Correct here and Gene Hoffman either Doesn't know this or is it just it's Just the Willing suspension of disbelief Effectively but Gene Hoffman responds And says the Howie test requires a sale Stop I gotta stop there The SEC doesn't care they're going to Come after you even if you sell none They'll they'll say that you're offering

But anyway Gene Hoffman says the Howie Test requires a sale xch has never been Sold by Chia Network Inc we've also not Done anything cute that could look like A sale or a gift or dot dot dot and then Matt Hamilton said Rota like I said Hopefully the Ripple case settles Favorably for you Gene Hoffman says the Facts are very different and our method Was designed to not make their mistake They will lose of course Uh and this pause note he's he wrote Loose when he means lose he wrote L-o-o-s-e uh well look I don't know if Ripple's going to lose but in terms of The idea of xrp being a security it's Hard to Fathom that it would you know Secondary Market transactions wouldn't Be protected somehow but Gene Hoffman Seems to think that all of it should be Illegal and just you know to cease to Exist effectively uh Matt Hamilton Responded and said like I said for your Sake you better hope they don't lose as The SEC are trying to argue no Investment contract necessary and Secondary market sales can be Securities So Paul's to think about this this Gene Hoffman guy is talking about well we're Going to register you know buy shares of Our company you know equity in the Company uh and then for some reason he Has in his mind that that'll make it Clear that that's separate from the xch

Token okay fine that's that's what he Thinks uh I don't believe that's going To protect him for a second here but Even if so they're already arguing that Secondary market sales can be Securities They're doing in the Ripple case how is He this oblivious and then Gene responds And he says no the SEC is saying that When Ripple sold xrp without a Registration statement That was either an investment contract Or a security scheme both clearly Covered by the 33 and 34 act I wouldn't Be surprised if they prevailed that After uh if they prevailed that after That sin secondary sales remain security So there you go he's siding with the SEC On this in fact he's saying that since Ripple made a violation that all sales Henceforth forever all secondary Market Transactions must remain illegal Securities transactions forever for all Time that's the embodiment Theory or at Least a part of it It really like that's what he's arguing He's arguing the BS nonsense novel Theory and he thinks that this is going To Curry favor with the SEC for him I I Just I I beg to differ I do not think That's how this works that's not what History has shown us makes sense for Companies that want us to continue to Exist in the world of crypto and Blockchain

It's just completely ridiculous Oh my gosh and then Matt Hamilton wrote But how can you tell if secondary sales Involve Ripple xrp is fungible Gene Hoffman says selling a token Without a registration statement around May convert a token into a security so Don't sell them before there is a Registration statement so uh he's of the Incorrect mindset that it's the asset Itself that is the security or is not The security The asset is never the security he Doesn't even know that but he sure has a Lot of opinions that he's sharing Publicly here I just this this would Make me frankly alarmed to invest in his Chia thing because he's making himself a Target I don't even know if the Project's good or bad I don't know Anything about it for the purpose of This video I don't care You know and I wish him the best I don't Know what's going to happen again don't Know anything about the project I don't Own any of it but uh there we are and so The icing on the cake and I I kind of Teased this a little bit at the outset Of the video but it's the fact that he's Working with the SEC and so this guy Named Aaron that started this whole Thread wrote to Gene Hoffman and said May I ask whether Chia has discussed With the SEC on the issue that xch is

Not a security if yes have you ever Received an affirmative reply from the SEC that xch is not a security to which Gene responded and this is hilarious but I kind of feel bad for him because he Just seems like so gullible and Uninformed but he wrote All I can say Right now is that we have proactively Engaged with the SEC and remain Confident in our plan Folks proactively engaging with the SEC Makes you a Target you're doing all of The hard work for them you're saying Here's what we're if you're actually Being transparent as you need to be if You're doing what Gene says he's doing Here then you're like here's our game Plan here's everything we're doing And here's why we think that we're not As good here's why we know we're not a Security you'll be still bullets to say That even and the SLC will just go along Nod their heads okay and then after You've given them everything they're Like wow we really just had a case Handed to us it's lead generation that's What Brad garlinghouse called it the the It's a lead generation come in and talk To us that's lead generation then turn Around and see you Though again don't be surprised don't be Surprised if they come next and and you Already know they're not they're not Going to get a stamp of approval from

The SEC this guy's living in a fantasy Land here that's not gonna happen You Garrigan's already said everything That's not Bitcoin is a security that Doesn't include you are you serious That's the guy running the SEC what do You think is going to happen in terms of Enforcement action what do you think Coming from the guy at the top Huh holy gullibility Batman my God and Again I don't wish bad on the guy I Think he's wrong he just has a bad Opinion here I don't want another crypto Project to be attacked but I I don't Respect the approach he's taken in Siding with the SEC I don't So I still want his project to succeed Because I prefer to see success I want Crypto to do well in general but I Certainly don't apprec uh you know don't Respect the fact that he's siding with The SEC in any capacity as it pertains To crypto regulation And he he seems to just not care or not Know that it's outside Of what uh your precedent case precedent Just go back over seven years with case Laws It's stupid S-t-o-p-i-d stupid I'm not a financial Advisor you should not buy yourself Anything because of anything I say are Right that would be a very very very bad

Idea until next time to the Moon family Sedan


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