David Schwartz, the Chief Technology Officer (CTO) of Ripple, has addressed speculation that the organization may be contemplating the termination of its partnership with the XRP token
The price of XRP could be adversely affected by the speculations, as the crypto firm has thus far provided it with its primary utilities.
XRP Is Not Being Abandoned by Ripple
Schwartz clarified in an X (formerly Twitter) post that Ripple was not abandoning XRP and that the post that originally sparked the speculation was misunderstood. The rumors commenced when an X user (@AspenSignals) posted Schwartz’s profile photo on his X platform and inquired whether Ripple was abandoning XRP.
Schwartz’s cover photo implied that the company was abandoning XRP due to a “web of corruption” in the financial sector, which was intended to impede their ability to provide immediate payment services using XRP.
Nevertheless, Schwartz asserted that the phrases were associated with a fictional pitch for a fictional film. He also stated that the conditions necessary to make the pitch match a reality have not yet occurred, which implies that Ripple was not currently confronted with such a challenge. Nevertheless, Ripple’s ability to confront such a challenge was conceivable due to its ongoing legal dispute with the Securities and Exchange Commission (SEC).
The Commission was suspected of having maliciously enforced action against the crypto firm at some point, as evidenced by allegations made by Ethereum insider Steven Nerayoff. Additionally, regulatory scrutiny could have easily compelled Ripple to forsake XRP, as the lawsuit has had a detrimental effect on their operations.
Schwartz’s prompt response has served to alleviate concerns among XRP community members and has helped clarify the situation. Fortunately, this has been the case. Ripple’s operations are centered around XRP, which is employed by the crypto firm to offer cross-border payment services. Additionally, Ripple is the largest proprietor of XRP, with nearly 50% of the cryptocurrency token’s supply in its possession.
That is an additional reason why members of the XRP community may have been apprehensive, as the crypto firm may choose to liquidate its XRP holdings on the market if it decides to abandon XRP.
Continued to Be a Component of Long-Term Strategies
During an interview with CNBC, Ripple’s President, Monica Long, reiterated that XRP remains a component of the company’s long-term strategy.
She made this statement in response to a question regarding the necessity of the XRP token, as Ripple is preparing to introduce its stablecoin. Long clarified that XRP will continue to be utilized in its operations, stating that the crypto firm employs a “mix of assets” to provide its payment consumers with services.
She also emphasized that XRP is a bridge asset for the “long tail of currency pairs” and serves a unique purpose. She also hinted at the potential future applications of XRP, stating that it will be a significant factor as Ripple tokenizes additional assets on-chain. According to Long, these assets will be provided with liquidity through XRP.
