Steven Nerayoff, an early advisor to Ethereum, has highlighted reasons why XRP holders should pay attention to the ETHGate theory, suggesting its impact on XRP’s price dynamics.
Nerayoff engaged in a conversation with an XRP holder known as XRP_Krnboy, underscoring the significance of ETHGate in relation to the XRP community.
He recently revealed that he’s taken legal action against StormX CEO Simon Yu and Arry Yu, co-founder of the U.S. Blockchain Coalition, alleging their involvement in fabricating charges leading to his 2019 indictment. Nerayoff claims they orchestrated extortion charges against him and misappropriated tokens worth millions.
Regarding XRP_Krnboy’s dismissal of ETHGate’s relevance to the XRP community, Nerayoff emphasized two key reasons why XRP enthusiasts should take note. He pointed out that ETHGate might be a major factor keeping XRP’s price stagnant around the $0.60 mark. Moreover, he suggested that XRP holders should be concerned about broader corruption beyond their own holdings if they value societal freedom.
The ETHGate theory centers on the belief that Ethereum’s team cultivated relationships with influential SEC figures, potentially leading to favorable regulatory treatment for Ethereum, detrimental to other cryptocurrencies.
This theory gained traction when former SEC director William Hinman categorized Ethereum as non-securities alongside Bitcoin in 2018, citing its perceived decentralization. Critics, including Nerayoff, argue that Ethereum’s initial ICO displayed less decentralization compared to other digital assets’ initial sales.
Former Ethereum core developer Lane Rettig also suggested that a significant portion of ETH was distributed during the pre-mine stage, with pseudonymous participation, leaving the identity of those holding large amounts of pre-mined ETH unknown to this day.
