Ripple Chief Technology Officer (CTO) David Schwartz responded to rumors that the Company may be considering abandoning its association with the XRP token. So far, the crypto company has provided XRP with its main tools and such rumors could negatively affect its price.
Ripple is not giving up on XRP
Schwartz explained in X (formerly Twitter) post that Ripple has not abandoned XRP and that the post that sparked these rumors was misunderstood. The rumors started when user X (@AspenSignals) posted a cover photo of Schwartz on his X platform and asked if Ripple was abandoning XRP.
Schwartz’s cover photo suggested that the company abandoned XRP due to a “web of corruption” in the financial world that was believed to be hindering its goal of providing instant payment services using XRP.
However, Schwartz stated that the lines refer to the fictional plot of a fictional film. He added that circumstances have not yet arisen to make the on-field match a reality, suggesting that Ripple has not faced such a challenge. However, Ripple facing such a challenge seemed doable given the long-running legal battle against it Securities and Exchange Commission (SEC).
At one point, the Commission was believed to have maliciously forced action against a crypto company based on claims made by Ethereum expert Steven Nerayoff. Moreover, the lawsuit had a negative impact on Ripple’s business and could easily force it to abandon XRP due to regulatory scrutiny.
Fortunately, Schwartz’s quick response helped clarify the situation and ease doubts Members of the XRP community. XRP is at the heart of Ripple’s business, and the crypto company uses it to provide cross-border payment services. Ripple is also there the largest holder of XRP, holding almost 50% of the crypto token’s supply. This is another reason why members of the XRP community may have been concerned, considering that a crypto company could dump its XRP holdings on the market if it abandons XRP.
Still part of long-term plans
In interview from CNBC, Ripple President Monica Long confirmed that XRP is still part of the company’s long-term plans. She made this remark when asked if an XRP token was still needed and Ripple planned to do so release your stablecoin. Long explained that XRP will continue to be used in its business, noting that the crypto company uses a “mix of assets” to serve its payment customers.
She emphasized this too XRP serves a unique purpose and is a bridge asset for the “long tail of currency pairs”. She also alluded to the future exploit case of XRP, noting that it will play a major role as Ripple tokenizes more assets on a chain. Long stated that XRP will be used to provide liquidity to these assets.
Featured image created with Dall.E, chart from Tradingview.com
