XRP News: Is XRP Still a Good Investment After Its 500% Rally?

Share This Post

XRP News

The post XRP News: Is XRP Still a Good Investment After Its 500% Rally? appeared first on Coinpedia Fintech News

Ripple’s native cryptocurrency, XRP, has been a standout performer in the crypto market, surging nearly 500% from $0.50 to $2.60 in recent months. Despite this remarkable growth, XRP has come under fire in a video titled “Everything That’s Wrong With XRP,” sparking debate within the crypto community.

Key Criticisms of XRP

The author of this video has outlined three key reasons why XRP might not be a solid investment.

Replacement by Stablecoins: Author argued that XRP’s original role as a bridge currency for cross-border payments has been overshadowed by stablecoins, which offer more stability. Ripple’s recent launch of its stablecoin, RLUSD, has added fuel to this claim.

Ripple’s IPO Plans: The video suggested that Ripple’s plans for an IPO undermine XRP’s relevance, as the company’s stock performance could overshadow the cryptocurrency.

Ripple’s Large XRP Holdings: Ripple currently holds over 38 billion XRP tokens and has been selling them to fund operations. This centralization, according to the author, poses risks to XRP’s long-term value.

Ripple CTO David Schwartz Responds

In response, Ripple CTO David Schwartz took to X to address these criticisms head-on.

Schwartz dismissed the claim that stablecoins make XRP obsolete. He explained that XRP’s unique role as a bridge currency relies on its liquidity and the ability of holders to buy and sell the token freely. This liquidity ensures that XRP remains a valuable asset for payments.

Furthermore, Schwartz noted that holding XRP can simplify transactions by reducing the number of currency exchanges needed. “If you don’t know which currency you’ll need next, holding XRP makes sense,” he said.

Schwartz also expressed skepticism about predictions regarding XRP’s price movements, highlighting how XRP and Stellar (XLM) often follow similar market trends, driven by broader factors rather than Ripple-specific developments.

Why XRP Still Has Potential

Despite the criticisms, Schwartz supports XRP’s importance in the digital payment ecosystem. For individuals and businesses navigating multiple currencies, holding XRP can streamline operations, making it an efficient choice in a complex financial landscape.

While debates continue, Ripple is looking toward the approval of an XRP ETF. The company has been working closely with financial institutions, and so far, four filings for XRP ETFs have been submitted. These efforts suggest a strong possibility that the proposals could gain approval before 2025.

Never Miss a Beat in the Crypto World!

Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

FAQs

How does Ripple’s IPO affect XRP?

Ripple’s IPO plans might overshadow XRP, leading to concerns about the long-term relevance of the cryptocurrency and its potential value.

What’s the future of XRP with the ETF approval?

Ripple is working towards an XRP ETF approval, which could boost institutional adoption and provide long-term growth potential for XRP.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Wall Street Pepe Presale Goes Viral, Raises $31M – Next 100x Gem?

Forget the mid-December dip – Wall Street Pepe (WEPE) is going from strength to strength This new meme coin project has raised over $31 million in its token presale event, defying the market

Secret Network Launches Claive AI With Privacy at Its Core

Secret Network has announced the launch of Claive AI, a decentralized platform that aims to provide secure and confidential artificial intelligence (AI) services for enterprise users Claive AI

Coinbase Advanced Saw Rapid Surge in Users and Derivatives Trading In 2024

The post Coinbase Advanced Saw Rapid Surge in Users and Derivatives Trading In 2024 appeared first on Coinpedia Fintech News Coinbase Advanced, the cryptocurrency exchange’s platform for

Coinbase Advanced Saw Rapid Surge in Users and Derivatives Trading In 2024

The post Coinbase Advanced Saw Rapid Surge in Users and Derivatives Trading In 2024 appeared first on Coinpedia Fintech News Coinbase Advanced, the cryptocurrency exchange’s platform for

Why These 5 Altcoins Are of Choice in December 2024 for Long-Term Success

As December 2024 unfolds, the cryptocurrency market continues to offer remarkable opportunities for investors aiming to maximise their returns While Bitcoin remains a dominant force, altcoins have

World Liberty Financial Swaps $10.4M in cbBTC for WBTC Amidst Delisting Controversy

The post World Liberty Financial Swaps $104M in cbBTC for WBTC Amidst Delisting Controversy appeared first on Coinpedia Fintech News In a latest development, World Liberty Financial (WLFI), a project