Ethereum Insider Says ETHGate Affects XRP Price, Holders Should Care About it

Former Ethereum adviser Steven Nerayoff urges XRP holders to be concerned about ETHGate, emphasizing how the infamous theory affects XRP price.

Steven Nerayoff, an early adviser to the Ethereum Foundation, has pointed out reasons why XRP community members should care about ETHGate.

The popular crypto adviser made this known yesterday during an exchange with an XRP holder who goes by the pseudonym XRP_Krnboy.

Nerayoff Sues StormX Co-Founder

In his latest tweet, Nerayoff disclosed that he had sued StormX CEO Simon Yu and co-founder of U.S. Blockchain Coalition Arry Yu for colluding with the government in fabricating charges that led to his indictment in 2019.

Nerayoff, who has been commenting on ETHGate for months, alleged that Simon and Arry stole his tokens worth millions of dollars when they leveled extortion charges against him.

The crypto advisor revealed that he has enough evidence, including voice recordings, to show that Simon and Arry offered him more tokens in order to silence him.

Why XRP Holders Should Care About ETHGate

Commenting on the development, XRP_Krnboy said XRP community members do not care about ETHGate. The X user stated that Ripple needs to settle its lawsuit with the SEC to set the stage for a potential XRP rally.

Furthermore, XRP_Krnboy expressed concern about XRP’s current price, suggesting that it seems stuck around the $0.60 level.

Responding, Nerayoff highlighted two major reasons why XRP enthusiasts should care about ETHGate. According to Nerayoff, the so-called ETHGate theory is the major reason why XRP is still stuck around $0.60.

In addition, the former Ethereum advisor stated that XRP holders should be concerned about the corruption happening beyond their tokens if they care about living in a free society.

Investors in XRP don’t give a shit about #ethgate? You should care because that why $XRP is as you say “$0.6 omg”. More importantly you should care about this level of corruption beyond your tokens if you care about living in a free society.

— Steven Nerayoff (@StevenNerayoff) December 21, 2023

ETHGate Scandal and Debate

For context, ETHGate is a theory that has gone viral in the crypto space for years. Proponents of the theory alleged that the team behind Ethereum fostered relationships with prominent SEC officials to create a favorable regulatory environment for ETH to the detriment of other crypto assets.

This relationship, according to critics, prompted former SEC director William Hinman to declare ETH alongside Bitcoin as non-securities in 2018. In his remark, Hinman stated that ETH has become “sufficiently decentralized” over the years and should no longer be classified as a security.

On the contrary, several crypto proponents, including Nerayoff, argued that Ethereum’s 2014 ICO displayed less decentralization than initial sales of other digital assets.

To corroborate this claim, former Ethereum core developer Lane Rettig alleged that 70% of ETH supply was distributed during the pre-mine stage.

He added that only a few individuals purchased a huge percentage of the pre-mine ETH because they participated pseudonymously during the sales. To this day, no one knows the identity of the whales that scooped the huge amounts of pre-mined ETH.

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