XRP Community Demands an Apology as Cardano Founder Highlights “Backroom Stuff Played Role” During ETH ICO

Top XRP community member demands an apology after Cardano founder Charles Hoskinson admitted that personal relationships and backroom stuff likely influenced SEC’s decision to ignore Ethereum’s ICO.

Steven Nerayoff’s recent allegations surrounding the SEC’s engagement with Ethereum during and after ETH’s Initial Coin Offering (ICO) have continued to stir controversies within the broader crypto community. 

It bears mentioning that Nerayoff, an early Ethereum adviser, recently made some allegations regarding Ethereum ICO while hinting at possible corruption within the SEC. 

“Former SEC Chair was Joe Grundfest who has integrity which seems out of fashion. As to the number, I now realize one can’t tell the true # of ETH ICO buyers as it was explained by some how whales could disguise their large positions during the ICO,” said Nerayoff. 

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Hoskinson Reacts 

Expectedly, top crypto stakeholders, including John Deaton and Cardano founder Charles Hoskinson, have reacted to the development. 

In a tweet on September 17, Hoskinson said the SEC ignored Ethereum at its $18 million ICO as not many crypto projects were “doing them.”

He admitted the possibility of “personal relationships and backroom stuff” likely playing a role in the SEC’s decision. Notably, Hoskinson asserted that such relationships happen daily with big companies, including BlackRock, Goldman Sachs, and Chase.

However, he reiterated that Ethereum officials did not bribe the SEC to go after Ripple. 

“That’s the conspiracy part that makes no sense at all to me,” he added.

I've always believed that when Ethereum was an 18 million dollar ICO and very few people were doing them that the SEC decided to ignore it and crypto and they got lucky to be too old to consider after the eye of sauron moved over.

Absolutely personal relationships and backroom…

— Charles Hoskinson (@IOHK_Charles) September 17, 2023

Hoskinson remarked after an XRP fan asked him whether he now believes in “ETH Gate” following Nerayoff’s allegations.

ETH Gate 

“ETH Gate” is a multi-year theory referring to Ethereum officials’ relationship with prominent members of the SEC. Many speculate that the relationship helped create a favorable regulatory environment for Ethereum. 

A case in point is Bill Hinman, former director of SEC’s Corporation of Finance, declaring ETH a non-security.

XRP community members have been shedding light on SEC’s unholy relationship with Ethereum since the beginning of Ripple’s lawsuit.

They allege that the relationship existing between Ethereum and key SEC officials prompted the regulator to charge Ripple with offering XRP as an unregistered security.

However, Hoskinson and others have dismissed the allegation, describing it as a “grand conspiracy theory.”

Top XRP Enthusiast Demands an Apology

As expected, Hoskinson’s recent comment on the “ETH Gate” saga stirred reactions from XRP community members.

Digital Perspectives, a top XRP influencer, said the community deserves a public apology from Hoskinson following his recent statement that “backroom stuff played a role.”

“He is admitting we are right that backroom deals played a role which does NOT make us ‘Grand Conspiracy Theorists’ but it also attempts to rationalize that this is just how the system works for large players everyday, no matter the industry,” the influencer added.

For #CharlesHoskinson to finally admit "backroom stuff likely played a role",in and of itself deserves a public apology to the #XRPCommunity. He is admitting we are right that backroom deals played a role which does NOT make us "Grand Conspiracy Theorists" but it also attempts to… https://t.co/Fr9oFNOBCA

— Digital PerspectivesPermaBull🪝 (@DigPerspectives) September 18, 2023

Meanwhile, some XRP enthusiasts believe Hoskinson will never apologize to XRP community members as his ego will not let him do so.

Too big of an ego, for that to happen.

— CostaRicaXRP (@Slade2Rk) September 18, 2023

His ego won’t let him

— Onlyhereforxrp (@onlyhereforxrp) September 18, 2023

As reported earlier, Hoskison claimed it was a “grand conspiracy” for XRP holders to allege that Ethereum officials bribed top SEC officials to sue Ripple Labs. 

He claimed that the speculation was a grand conspiracy as there was no evidence to prove that the entire commission was paid to go after only XRP. 

Hoskinson’s comment attracted backlash from the XRP community, with some enthusiasts calling on financial authorities to investigate his role at Ethereum. 

Interestingly, with Hoskinson admitting that “personal relationships and backroom stuff” played a role in the SEC ignoring Ethereum’s ICO, it is evident that XRP community members are not grand conspiracy theorists as he labeled them.