Ripple’s Chief Technology Officer (CTO) David Schwartz responded to rumors that the company may be considering dropping its association with the XRP token. The crypto company has provided XRP with its main utilities so far, and such rumors could negatively impact its price.
Ripple does not abandon XRP
Schwartz clarified in an X (formerly Twitter) job that Ripple was not abandoning XRP and that the message that started the rumors had been misunderstood. The rumors started when user X (@AspenSignals) posted Schwartz’s cover photo on his X platform and asked if Ripple was abandoning XRP.
Schwartz’s cover photo suggested that the company was abandoning XRP due to a “web of corruption” in the financial world, which was meant to prevent it from achieving its goal of providing services. instant payment services using XRP.
However, Schwartz said the lines were about a fictional pitch for a fictional film. He added that the circumstances necessary to make the pitch match a reality have not yet occurred, suggesting that Ripple was not facing such a challenge. However, Ripple facing such a challenge seemed feasible given its long legal battle against the Securities and Exchange Commission (SEC).
At one point, it was believed that the Commission had maliciously initiated action against the crypto company based on the allegations made by Steven Nerayoff, Ethereum Insider. Additionally, the lawsuit negatively impacted Ripple’s operations and could have easily forced them to abandon XRP due to regulatory scrutiny.
Fortunately, Schwartz’s quick response helped clarify things and ease some people’s concerns. XRP Community Members. XRP is at the center of Ripple’s operations and the crypto company uses it to provide cross-border payment services. Ripple is also the largest holder of XRP, holding almost 50% of the crypto token supply. This is another reason why members of the XRP community may have been concerned, given that the crypto company could abandon its XRP holdings on the market if it abandons
This is always part of the long term plans
In a interview with CNBC, Monica Long, President of Ripple reaffirmed that XRP is still part of the company’s long-term plans. She made the remark when asked whether or not the XRP token is still needed with Ripple planning to do so. launch your stablecoin. Long clarified that XRP will still be used in its operations, noting that the crypto company uses a “mix of assets” to serve its payment customers.
She also emphasized that XRP serves a unique purpose and constitutes a bridging asset for the “long tail of currency pairs”. She also hinted at the future use case of XRP, noting that it will play a major role as Ripple tokenizes more assets in chain. Long said that XRP would be used to provide liquidity to these assets.
Featured image created with Dall.E, chart from Tradingview.com
