Ripple's recent moves have left the XRP community with a lot of questions, and people are debating the company's long-term strategy as a result. Amid all this confusion, one of the most pressing concerns is Ripple's pivot toward supporting RLUSD on the Ethereum blockchain.
What prompted this change, and why does it seem to move away from the XRP Ledger (XRPL)?
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A recent post by someone in the XRP community sums up these worries. It talks about concerns of a pre-IPO stock buyback, attempts to build liquidity on the XRPL and Ripple's direction as it navigates this complicated terrain.
This post also highlighted the unusual nature of Ripple's $1.4 billion pre-IPO buyback, raising questions about the timing and intent of such a move. They also questioned why the company would divert to Ethereum if their focus had been so heavily tied to the XRPL.
XRP over anything
Could this move to Ethereum signal a shift in strategy? Maybe it is because of liquidity challenges and slippage issues, and Ripple is looking at other options. This is a big deal, especially for those who have always seen XRP as a key part of Ripple's operations.
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The company's CTO, David Schwartz, tried to put people's minds at rest by saying that the move to Ethereum was just about supporting RLUSD on the Ethereum chain and was not a sign that Ripple was shifting its focus.
I'd prefer to see us using XRP on XRPL rather than RLUSD. But I think we'd all prefer anything on XRPL over anything else. Saving the cost of the centralized exchange is big.
— David "JoelKatz" Schwartz (@JoelKatz) September 4, 2024
Even so, there is still some unease in the community. Schwartz said he prefers XRP on the XRPL over RLUSD because it avoids centralized exchanges and cuts costs. But it seems that, even though Ripple is supporting Ethereum in this case, the XRPL is still central to the company's vision.
