XRP Faces Doubts, but Still Holds Potential: The Future Path of Ripple

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Ripple's native token XRP has recently performed impressively, with its price soaring from $0.50 to $2.60, an increase of nearly 500%. However, a video titled 'All the Questions About XRP' has sparked heated discussions in the community, raising doubts about XRP's long-term potential.

Three Major Critiques in the Video

Competition from Stablecoins

The author believes that XRP's role as a cross-border payment bridge currency is being replaced by more stable stablecoins. For example, Ripple's recently launched stablecoin RLUSD is seen as a manifestation of this trend.

Ripple's IPO Plans

The video claims that Ripple's IPO could weaken the relevance of XRP. The performance of the company's stock might overshadow the status of the cryptocurrency.

Ripple Holds a Large Amount of XRP

Ripple holds over 38 billion XRP and funds its operations by selling tokens. This centralization is considered a potential risk to XRP's long-term value.

Response from Ripple's Chief Technology Officer

Ripple's Chief Technology Officer David Schwartz responded positively, refuting these critiques one by one:

Stablecoins Cannot Fully Replace XRP

Schwartz emphasized that XRP's liquidity and free trading characteristics give it unique value in the payment field. Holding XRP can reduce the number of currency exchanges required in cross-border transactions, simplifying the transaction process.

Why Does XRP Remain Attractive?

Despite ongoing controversies, XRP's use cases remain extensive:

Simplified Operations for Cross-Border Payments

XRP provides tools for businesses and individuals to reduce transaction complexity. Holding XRP can serve as a neutral asset, simplifying currency exchanges.

Regulatory and Market Support

Ripple is actively seeking approval for an XRP ETF, with four applications already submitted. This demonstrates Ripple's confidence in the long-term development of XRP, with expectations that these ETFs may be approved as early as 2025.

Although competition from stablecoins, centralization risks, and the potential impact of an IPO pose challenges for XRP, its unique payment functionality and continually expanding market applications make it an important asset in the crypto ecosystem. As Ripple pushes for ETF approval, XRP is expected to further solidify its position and attract more investor attention in the future.

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