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Chainlink Proponent Criticizes XRP and Ripple
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The crypto community is abuzz after Zach Rynes, a notable Chainlink advocate, shared a controversial critique targeting XRP and Ripple. His views sparked a strong reaction from the crypto space, including Ripple supporters and former executives. Rynes positioned Chainlink’s LINK token as a superior choice for institutional investment, dubbing XRP a “ghost chain” and questioning Ripple’s focus on shareholder benefits over token holders.
Rynes’ Argument Against Ripple’s Practices
In a recent social media post, Rynes contended that XRP investors are inadvertently financing a company that prioritizes shareholders over token holders. By issuing both tokens and shares, Ripple has, according to Rynes, created conflicting interests between these two groups. In the face of surplus revenue, shareholders are legally prioritized, potentially disadvantaging XRP investors.
Rynes further criticized Ripple for using XRP sales to fund acquisitions and stock buybacks, which he claims solely benefit shareholders. He highlighted court documents where Ripple acknowledged that XRP’s bridge currency use case does not influence its price.
XRP Ledger Criticized as Obsolete
Rynes dismissed the XRP Ledger (XRPL) as an outdated ghost chain, ranking outside the top 40 by usage, with minimal market share in real-world assets and stablecoins. He noted that Ripple issued the RLUSD stablecoin predominantly on Ethereum and expanded to other chains beyond the XRP Ledger.
Chainlink’s Superior Investment Case
Rynes argued that LINK offers a cleaner investment scenario as it lacks competing equity investors. Chainlink focuses on growing its network, with employees rewarded in LINK tokens rather than equity, emphasizing a unified value proposition. He also pointed to Chainlink’s dominant presence in decentralized finance (DeFi), boasting over 70% market share with $60 billion in secured Total Value Locked (TVL) and partnerships with major institutions like SWIFT and JPMorgan.
Former Ripple CTO Responds
The debate intensified when David Schwartz, Ripple’s former CTO, responded, asserting that Ripple’s consistent XRP sales over the years had a predictable price impact, benefiting buyers with lower entry costs. Rynes dismissed this as “elite-tier gaslighting,” questioning the logic of suppressing XRP’s price as a supposed advantage for holders.
Schwartz maintained that market factors influence buyers and sellers equally, suggesting that low entry prices offered a trading advantage. The discussion highlighted the complex dynamics between Ripple’s corporate strategies and its impact on XRP investors.
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