- Prominent XRP community figures caution against a singular focus on Ripple’s initiatives for XRP’s growth.
- Ripple’s influence on XRP’s trading volume is a mere single-digit percentage, countering the narrative that Ripple alone can elevate XRP to new heights.
Amid burgeoning interest in the crypto asset XRP, a rift is emerging within its investor community concerning Ripple’s role in the token’s future valuation. While some, like the XRP influencer known as Digital Asset Investor (DAI), maintain that Ripple’s business strategies could catapult XRP into new financial stratospheres, others beg to differ.
The Limits of Ripple’s Influence
Notably, Crypto Eri, another influential figure in the XRP arena, recently took to Twitter to challenge this line of thinking. She argued that Ripple‘s contributions to XRP’s trading volume amount to a modest single-digit percentage. Ergo, placing one’s investment hopes solely on Ripple’s activities for XRP’s valuation constitutes a precarious bet. Her remarks came in response to DAI’s enthusiastic endorsement of Ripple’s potential impact on XRP, based on claims that Ripple aims to make XRP a hedging asset during financial crises and even a global reserve digital currency.
Unlike DAI, I don’t rely on the efforts of Ripple to build up the price of XRP. Never have, never will. Especially with accounting for single digit impact on volume. It’s surprising after surviving the SEC attack, anyone would subscribe to this reliance. https://t.co/XG2bA6qsva
— 🌸Crypto Eri 🪝Carpe Diem (@sentosumosaba) September 4, 2023
The discourse intensified when Bill Morgan, a prominent attorney with a pro-XRP inclination, chimed in. His succinct observation,
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“You expect profits from the efforts of Ripple,”
touched upon the so-called Howey Test’s criterion for determining whether an asset classifies as a security. Coming on the heels of a protracted legal skirmish with the U.S. Securities and Exchange Commission over XRP’s status, Morgan’s statement underscores the fraught terrain of expecting profits solely based on a company’s actions, especially when that company is Ripple.
Beyond Ripple: The Expanding XRPL Ecosystem
Further complicating this narrative, Crypto Eri also highlighted that Ripple is merely one player among a myriad of entities building on the XRP Ledger (XRPL). This perspective finds substantiation in official court documents from Ripple, stating that XRP’s value doesn’t hinge solely on Ripple’s activities but is influenced by retail speculation and other projects developed on XRPL.
Hence, while Ripple undoubtedly plays a role in shaping XRP‘s market narrative, its influence is not unilateral. According to expert analysis, an investment strategy predicated only on Ripple’s role in elevating XRP’s market value might lack the nuanced understanding required in the ever-evolving, multi-stakeholder crypto landscape.
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