XRP is Not a Security, Binance CEO Changpeng Zhao Affirms

Ripple's XRP Listing on Coinbase Settles the Issue of XRP Being a Security

Changpeng Zhao is known for being in touch with the community of users in the cryptocurrency space. Earlier this week he opened up for an ask me anything session on Twitter’s periscope.

During the ask me anything session a user wanted to know if there was any upcoming announcement on XRP. CZ mentioned the pending lawsuit against Ripple and commented on the much-debated issue of whether or not XRP is a security.

“People are aware that there is a lawsuit against XRP on whether they are a security or not. Our judgment is that they are not. And until it’s proven that they are, we listed them, and luckily we dragged other exchanges to list them. That’s a good thing… Just because there’s a lawsuit doesn’t mean they are guilty. So, we applied our judgment there, and we’re always very supportive of XRP. There’s a lot of guys who complain that it’s overly centralized, but look, the market votes with their feet, and XRP is one of the largest market cap coins, and it’s like that for a reason.”

CZ has been consistent in his support for XRP. Back in December @czbinance shared similar thoughts on Twitter.

“The court case may take years.  But if XRP is ruled as a security, it would seriously hurt a lot of US users, and to a certain extent, other users around the world too.  It certainly doesn’t look like a security to me, but that’s just one person’s opinion.”

Although XRP is highly valued in terms of market capitalization, it still has many detractors. Zhao warned against what he referred to as “decentralization idealism” and echoed his belief that use leads to adoption, not ideas. CZ backed up Ripple and XRP against the claims that it is not decentralized during his AMA and on Twitter.

“It’s simple my friend, as I answered in a few podcasts recently, one of the best ways to identify projects with value is the user base. Xrp got that. The market votes with their feet, not decentralization idealism. Increase your user base, increase adoption.”

While it’s detractors critique Ripple’s centralized characteristics, it’s hard to argue that their focus of bridging the financial industry to the blockchain world is not making an impact.