June 16, 2024
1 Solar System Way, Planet Earth, USA
Crypto

Ripple CTO Responds to Rumors That Crypto Company Is Ditching XRP

Ripple's Chief Technology Officer (CTO) David Schwartz has responded to rumors that the Company might be considering abandoning its partnership with the XRP token. The crypto company has so far provided XRP with its main utilities, and such rumors could negatively impact its price.

Ripple is not abandoning XRP

Schwartz Clarified in an X (formerly Twitter) mail that Ripple was not abandoning XRP and that the post that started the rumors was misinterpreted. The rumors started when an X user (@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 would prevent them from achieving their goal of providing instant payment services using XRP.

XRP Ripple
Source: X

However, Schwartz claimed that the lines related to a fictional plot for a fictional film. He added that the circumstances to make the launch match a reality have not yet occurred, suggesting that Ripple was not facing such a challenge. However, Ripple facing such a challenge seemed feasible considering his long legal battle against the Securities and Exchange Commission (SEC).

At some point, the Commission was believed to have maliciously taken action against the crypto company based on claims made by Steven Nerayoff, Ethereum expert. Furthermore, the lawsuit has had a negative impact on Ripple's operations and could have easily forced them to abandon XRP due to regulatory scrutiny.

Fortunately, Schwartz's quick response has helped clear things up and ease concerns among XRP Community Members. XRP is at the center of Ripple's operations and is used by the crypto company to provide cross-border payment services. Ripple is also the largest holder of XRP, which holds almost 50% of the crypto token supply. That's another reason why members of the XRP community may have been worried, considering that the crypto company could dump its XRP holdings on the market if it abandons XRP.

It remains part of the long-term plans

in a interview with CNBC, Ripple President Monica Long He reaffirmed that XRP was still part of the company's long-term plans. He made this comment when asked if the XRP token was still necessary, and Ripple was making plans to launch your stablecoin. Long clarified that XRP will continue to be used in its operations, noting that the crypto company uses a “mix of assets” to serve its payment customers.

She also highlighted that XRP has a unique purpose and is a bridging asset for the “long tail of currency pairs”. He also alluded to the future use case of XRP and noted that it will play an important role as Ripple tokenizes more assets in chain. Long stated that XRP will be used to provide liquidity to these assets.

XRP Price Chart from Tradingview.com (Ripple CTO)
XRP price struggles amid rumors | Fountain: XRUSDT on Tradingview.com

Featured image created with Dall.E, chart from Tradingview.com

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