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Sujit Kumar
Dec 19, 2024
by Sujit Kumar

Ripple CTO Addresses XRP Criticism Amid 500% Price Surge

Ripple CTO Addresses XRP Criticism

Table of contents

  1. Key Criticisms of XRP
    1. Ripple CTO David Schwartz’s Counterarguments
  2. XRP’s Future Prospects

Key Criticisms of XRP

Ripple’s XRP has seen extraordinary growth, surging nearly 500% from $0.50 to $2.60 in recent months. However, a video titled “Everything That’s Wrong With XRP” has sparked heated debates in the crypto community, highlighting three major criticisms:

  1. Stablecoin Competition: The video claims that stablecoins are overshadowing XRP as a bridge currency for cross-border payments due to their price stability. Ripple’s launch of RLUSD, its own stablecoin, further fuels this argument.

  2. Ripple’s IPO Plans: Ripple’s anticipated IPO could diminish XRP’s importance, as the company’s stock may become a more attractive investment.

  3. Centralized XRP Holdings: Ripple’s ownership of over 38 billion XRP tokens raises concerns about centralization and potential market manipulation.

    4. Ripple CTO David Schwartz’s Counterarguments

    Ripple CTO David Schwartz has publicly countered these criticisms on X. He dismissed the claim that stablecoins render XRP obsolete, emphasizing XRP’s liquidity and unique role in facilitating seamless payments. “If you don’t know which currency you’ll need next, holding XRP makes sense,” Schwartz explained.

    He also addressed fears about centralization, asserting that XRP’s liquidity supports its utility as a bridge currency. Additionally, Schwartz downplayed speculation about XRP’s price being directly tied to Ripple’s decisions, noting that broader market factors often influence both XRP and Stellar (XLM).

    XRP’s Future Prospects

    Despite ongoing criticism, XRP continues to hold a significant place in digital payments. For businesses navigating multiple currencies, XRP simplifies operations, proving its efficiency in complex financial systems. Ripple’s ongoing efforts to launch an XRP ETF could further solidify the token’s position, with multiple filings already submitted and potential approval expected by 2025.

    Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
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    Ripple CTO Addresses XRP Criticism Amid 500% Price Surge
    Sujit Kumar
    Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

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