In a shocking turn of events, the Ethereum community is facing the consequences of its previous mockery of Ripple during the SEC lawsuit. The tables have turned, and the Securities and Exchange Commission (SEC) has recently termed Ethereum as a security in one of its lawsuit proceedings. This has led to many experts in the industry stating that Ethereum is facing its own karma.
The lawsuit, which was filed against the blockchain company Ripple in December 2020, alleged that its digital asset XRP was an unregistered security. At that time, the Ethereum community took to social media to mock Ripple and label XRP as a security token. In fact, Vitalik Buterin who is deemed as a respected and humble figure by all crypto communities came very hard on Ripple and tweeted really harsh tweets about Ripple and XRP.
Here is what he tweeted when XRP was sued by SEC:
However, the recent statement by the SEC has left the Ethereum community in a difficult position, as they are now facing similar allegations.
SEC has not taken any legal action against ETH so far. However, the SEC’s announcement has sent shockwaves through the cryptocurrency industry, with many experts stating that the consequences of the lawsuit against Ripple were bound to come back and haunt the Ethereum community.
A few influencers have also started defending ETH citing various defense. Here are a few tweets:
https://twitter.com/jchervinsky/status/1633976692493500416
https://twitter.com/ErikVoorhees/status/1633946600891400193
https://twitter.com/thebearablebull/status/1634070099630981120
The news has also caused a decline in the price of Ether, the native cryptocurrency of the Ethereum blockchain.
The Ethereum community is now under shock thinking what would happen if SEC files any lawsuit against ETH Foundation or if ETH faces fate of XRP.
Many experts are stating that the allegations could have far-reaching implications for the industry as a whole. It remains to be seen how the lawsuit will play out, but one thing is clear: the Ethereum community is facing its own karma, and the repercussions could be significant.