Stellar

<p>Ripple’s native cryptocurrency, XRP, has been a standout performer in the <a href="https://coinpedia.org/news/crypto-news-today-dec-19th-2024-fed-signals-slower-rate-cuts-crypto-market-slumps/" target="_blank" rel="noreferrer noopener">crypto market</a>, 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.</p>   
<h2 class="wp-block-heading" id="h-key-criticisms-of-xrp">Key Criticisms of XRP</h2>   
<p>The <a href="https://x.com/AltcoinGordon/status/1869060620676645069" target="_blank" rel="noreferrer noopener nofollow">author of this video has outlined</a> three key reasons why XRP might not be a solid investment.</p>   
<p><strong>Replacement by Stablecoins:</strong> Author argued that XRP’s original role as a bridge currency for cross-border payments has been overshadowed by stablecoins, which offer more stability. <a href="https://coinpedia.org/news/the-wait-is-over-ripples-rlusd-stablecoin-set-to-launch-tomorrow/" target="_blank" rel="noreferrer noopener">Ripple’s recent launch of its stablecoin</a>, RLUSD, has added fuel to this claim.</p>   
<p><strong>Ripple’s IPO Plans: </strong>The video suggested that Ripple’s plans for an IPO undermine XRP’s relevance, as the company’s stock performance could overshadow the cryptocurrency.</p>   
<p><strong>Ripple’s Large XRP Holdings:</strong> 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.</p>   
<h2 class="wp-block-heading" id="h-ripple-cto-david-schwartz-responds">Ripple CTO David Schwartz Responds</h2>   
<p>In response, Ripple CTO David Schwartz took to X to address these criticisms head-on.</p>   
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
   https://twitter.com/JoelKatz/status/1869447152604438756 
 </div>
</figure>   
<p>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.</p>   
<p>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.</p>   
<p>Schwartz also expressed skepticism about predictions regarding <a href="https://coinpedia.org/price-prediction/xrp-ripple-price-prediction/" target="_blank" rel="noreferrer noopener">XRP’s price</a> movements, highlighting how XRP and Stellar (XLM) often follow similar market trends, driven by broader factors rather than Ripple-specific developments.</p>   [post_titles_links postid="395134"]   
<h2 class="wp-block-heading" id="h-why-xrp-still-has-potential">Why XRP Still Has Potential</h2>   
<p>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.</p>   
<p>While debates continue, Ripple is looking toward the <a href="https://coinpedia.org/news/xrp-etf-anticipation-builds-after-grayscale-trust-grows-300/" target="_blank" rel="noreferrer noopener">approval of an XRP ETF</a>. 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.</p>   [article_inside_subscriber_shortcode title="Never Miss a Beat in the Crypto World!" description="Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more." category_name="News" category_id="6"]   
<h2 class="wp-block-heading" id="h-faqs">FAQs</h2>   
<div class="schema-faq wp-block-yoast-faq-block">
 <div class="schema-faq-section" id="faq-question-1734612731400">
  <strong class="schema-faq-question">How does Ripple’s IPO affect XRP?</strong> 
  <p class="schema-faq-answer">Ripple’s IPO plans might overshadow XRP, leading to concerns about the long-term relevance of the cryptocurrency and its potential value.</p> 
 </div> 
 <div class="schema-faq-section" id="faq-question-1734612742773">
  <strong class="schema-faq-question"><strong>What’s the future of XRP with the ETF approval?</strong></strong> 
  <p class="schema-faq-answer">Ripple is working towards an XRP ETF approval, which could boost institutional adoption and provide long-term growth potential for XRP.</p> 
 </div> 
</div>

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

Table of Contents

CoinPedia News

Other articles published on Dec 19, 2024

MARA Bitcoin Investment: $1.53B Spent to Acquire 15,574 BTC

VeChain’s Latest Patent Approval Signals Big Moves Ahead for VET

Hedera (HBAR) Targets $0.504 After 840% Surge: Here’s the Next Resistance Level

Bitcoin’s Retest of $100,000: Is $104,000 Still a Possible Breakout?

Hong Kong Grants Licenses to Four New Crypto Exchanges Amid Accelerated Licensing Push

Call for Dutch Bitcoin Reserve: A Bold Step Toward Economic Stability

Join our free newsletter for daily crypto updates!