In a recent issue, Ripple Chief Technology Officer David Schwartz upheld some unpopular facts about Ripple and XRP shared by a community member.
Following the many misconceptions about Ripple and the XRP Ledger native token, XRP, a community member named Sir Clown Sniper took to Twitter on Friday to share 10 truths about the sixth-largest cryptocurrency, its underlying technology XRP Ledger and Ripple.
It bears noting that XRP is the native token of the blockchain platform — XRP Ledger. While Ripple is a crypto solutions company and cross-border payment firm headquartered in San Francisco.
As listed by Sniper, below are ten things the XRP community needs to get right:
- XRP cannot be pegged to Gold, Silver, or anything else
- XRP cannot magically just become a stablecoin
- Stablecoins issued on the XRP Ledger are not XRP
- The XRP Ledger requires electricity to operate
- XRP can only exist on the XRP Ledger otherwise it is an IOU. For context, an IOU token is a type of digital asset that is used to represent debt between two parties. IOU stands for “I owe you” and is a contract that acknowledges a certain amount of debt owed.
- XRP has nothing to do with ISO 20022. Notably, ISO 20022 is the de facto global data standard for modern payments and Ripple became its first Distributed Ledger Technology-focused partner after joining in 2020.
- Inter Ledger does not require XRP.
- All the money in the world will not run across the XRP Ledger
- The US Government is not going to buy back your XRP
- RippleNET is totally different from the XRP Ledger.
Sniper’s second point about XRP becoming a stablecoin like USDT, BUSD, and USDC contradicts the points previously noted by XUMM wallet developer, Wietse Wind. As published, Wind started two theoretical scenarios where XRP could function as a stablecoin.
Likewise, his ninth point also counters the popular buyback theories shared by Jimmy Vallee, the managing director of Valhil Capital.
Recall that Schwartz called Vallee’s first buyback theory an awful scam while he agreed to his subsequent theory about XRP being a good collateral like gold and sticks. Reacting to the ten points highlighted by Sniper, Ripple CTO said all points are true.
All of these things are true.
— David "JoelKatz" Schwartz (@JoelKatz) April 6, 2023
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