Recent developments within the Ripple ecosystem have sparked debates about the company’s commitment to XRP. Chief of these is the launch of RLUSD, Ripple’s stablecoin.
Concerns have surfaced within the cryptocurrency community about whether Ripple might be seeking alternatives to XRP, but statements from crypto researchers and experts affirm the contrary.
SMQKE (@SMQKEDQG), a recognized cryptocurrency expert and researcher, recently emphasized Ripple’s long-term investment in XRP. Reacting to the published materials, he highlighted a section revealing that Ripple plans to retain 25% of all XRP issued.
A portion of these tokens will fund operations while the company will distribute the rest to incentivize the participation of market makers, gateways, and consumers who utilize the protocol. This retention strategy underscores Ripple’s sustained reliance on XRP as an integral part of its ecosystem.
Because Ripple “plans to retain 25% of all XRP issued.”
Documented.
Few see the bigger picture.
https://t.co/8nAhmJGSTJ pic.twitter.com/dnQkPzp4zj
— SMQKE (@SMQKEDQG) January 2, 2025
The Importance of XRP
SMQKE’s post was a response to another tweet on X where the user affirmed Ripple’s commitment to XRP by referencing Ripple’s January escrow activity. Of the 1 billion XRP tokens unlocked on January 1, Ripple reportedly locked 70% (700 million XRP) back into escrow.
Skepticism surrounding Ripple’s commitment to XRP has grown in light of the company’s launch of RLUSD. However, experts, including Ripple CTO David Schwartz, have clarified that RLUSD and XRP are complementary assets within Ripple’s ecosystem.
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Schwartz has outlined how both can coexist, serving distinct roles in advancing Ripple’s mission to create efficient and scalable solutions for global transactions.
Ripple has historically positioned XRP as a bridge currency for facilitating international payments and liquidity provisioning. The retention of 25% of XRP and Ripple’s consistent escrow strategy indicate that XRP remains central to the company’s vision.
This approach aligns Ripple’s interests with those of its ecosystem participants, including financial institutions, gateways, and market makers. Ripple’s actions show its commitment to XRP’s advancement. They imply XRP’s enduring relevance in Ripple’s operations.
XRP is also an important part of the ecosystem because it is a fully decentralized cryptocurrency. RLSUD is a highly centralized stablecoin with restrictions on its use and an option for the company to freeze RLUSD tokens held by users under certain circumstances.
XRP on the other hand, is a cryptocurrency without limitations or censorship, adhering fully to the core tenets of blockchain technology. While both assets are complementary, they also play very different roles and will attract differing markets as the ecosystem grows.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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