Ripple’s Strategic Priorities: Understanding the Relationship with XRP Holders
In a recent discussion that has sparked considerable debate within the cryptocurrency community, Ripple’s Chief Technology Officer, David Schwartz—also known by his online alias “JoelKatz”—addressed the company’s stance regarding its responsibilities towards XRP holders. Schwartz’s comments were a response to assertions made by influential Bitcoin supporter Pierre Rochard, who emphasized that Ripple’s business strategies do not inherently cater to XRP investors.
The Priority of Ripple’s Interests Over XRP
Pierre Rochard, a staunch advocate for Bitcoin and a critic of XRP, shared his views on the platform X, stating: “XRP isn’t a security because Ripple is not obligated to provide ‘utility’ or any other benefit. They are free to sell off XRP, and you have no recourse other than to join them. This is why XRP does not qualify as a security.”
Advertisement Banner
Rochard further elaborated: “The XRP community is in disbelief. Ripple’s sale of XRP reflects its revenue model, not a financing scheme. As a token holder, you are not investing in Ripple, but merely acquiring tokens that are distributed without prior obligation. Ripple owes you nothing after the sale.”
Clarifying the Misunderstandings Among XRP Investors
Rochard’s observations challenge the belief among some XRP investors that Ripple is duty-bound to enhance the token’s value or act in its best interests. Supporting Rochard’s perspective, Schwartz candidly responded: “100% correct. Ripple can and should prioritize its own interests. Expecting Ripple to prioritize your interests over those of its shareholders is unrealistic.”
Schwartz likened the relationship to owning early works of an artist, explaining: “Owning an early piece from an artist doesn’t compel the artist to create or promote new works to enhance the value of earlier pieces. They have no obligation towards you, and neither are art pieces classified as securities.”
Ripple’s Long-Term Commitment Despite Market Misconceptions
Emphasizing that Ripple’s engagement with XRP is not transient, Schwartz added: “Ripple has been operational for around 14 years. We possess more XRP than can be monetized swiftly, ensuring our continued presence in the market. The notion of Ripple being the sole successful crypto entity is as unrealistic as considering Google the only successful internet company. We are, and will continue to be, staunch supporters of cryptocurrency.”
Schwartz’s reflections address a central debate within the XRP community. While many XRP investors anticipate that Ripple’s business achievements will positively impact the token’s value, Schwartz clarified that Ripple’s primary duty is towards its operational goals and shareholder interests, not directly towards XRP holders.
The Intersection of Ripple’s Business and XRP
Ripple’s strategies do intersect with XRP, such as utilizing the token in international payment solutions and promoting blockchain-based remittance services. However, Schwartz’s comments indicate that any advantages to XRP holders may be incidental rather than intentional.
As of the latest update, XRP is trading at $2.20.
