Zach Rector, a cryptocurrency advocate and media personality, has revealed his insights on the case regarding the security nature of XRP while drawing a comparison to the traditional store of value (Gold).<\/p>\n
The crypto advocate took to the social media platform X (formerly Twitter) to share<\/a> and confirm his observations on the digital asset\u2019s nature with the crypto community on Thursday.<\/p>\n Related Reading: Ripple Faces Potential $3 Billion Blow: Could A Settlement End The Long SEC Battle?<\/p>\n According to Zach Rector, just like the conventional store of value (Gold), XRP is both \u201ca currency and a commodity,\u201d suggesting similarities in investment value between the two assets.<\/p>\n Rector\u2019s X post came in response to Ripple\u2019s Chief Technology Officer (CTO) David \u201cJoelKatz\u201d Schwartz\u2019s post<\/a> also emphasizing the crypto asset\u2019s true nature, and refuting claims that the coin is a security.<\/p>\n In the post, David Schwartz affirms that XRP traded in commerce is a \u201craw good.\u201d Additionally, he stated that \u201ceach XRP is considered to be equivalent to other existing XRPs.\u201d<\/p>\n Furthermore, he noted that this is what classifies an asset as a commodity, underscoring the token\u2019s nature as a commodity. Schwartz also addressed the claims regarding the coin\u2019s value being derived from external \u201clegal obligations.\u201d Schwartz also stated that \u201cNo third party\u2019s legal obligations to holders contribute to the value of XRP in any way.\u201d<\/p>\n He explains that an investor does not anticipate receiving extra payments, having the ability to vote, or having Ripple raise prices. Rather, market factors, including supply, demand, and investor opinions, determine value.\u00a0<\/p>\n Rector\u2019s insights have triggered a stir within the crypto community, with several members expressing their displeasure in his comparison. A pseudonymous X user refuted<\/a> Rector\u2019s claims noting that XRP is not gold. They explain that this is because \u201cGold is money,\u201d while the crypto asset is a readily \u201cinflated currency exclusively used by banks.\u201d <\/p>\n