Ripple CTO Defends XRP

Ripple CTO David Schwartz defended XRP in a heated online debate after investor Jonnie King labeled the asset as a “vaporware ponzi.” The conversation arose from concerns regarding XRP’s inclusion in U.S. potential strategic reserves.

Investor Concerns

King argued that XRP is under centralized control, stating that Ripple’s influence over its supply makes it unsuitable for the U.S. strategic reserve. He claimed Ripple controls half of the XRP supply through its escrow system, enabling price manipulation and revenue generation.

He also alleged that Ripple could alter the release schedule of escrowed tokens anytime, giving the company undue influence over market dynamics. Additionally, King highlighted Ripple’s political contributions, mentioning donations from Ripple’s executive Chairman, Chris Larsen, to Kamala Harris’s campaign and contributions to Donald Trump’s inauguration after his victory.

Ripple CTO Reacts

Schwartz challenged King to discuss XRP’s underlying technology rather than its market dynamics. He asked King to identify any interesting aspects of the XRP Ledger (XRPL), attempting to divert the conversation away from popular critical narratives.

However, King dismissed this request, arguing that the technology’s relevance is moot if Ripple maintains control over the asset. He reiterated his concerns about pre-mined tokens and XRPL’s lack of smart contract capabilities, labeling it a “highly centralized ledger.”

Centralization vs. Decentralization

King maintained that XRP is inferior to Bitcoin due to its consensus mechanism relying on centralized trust, which could be compromised if collusion occurs within the Unique Node List (UNL). He contrasted this with Bitcoin’s proof-of-work model, allowing anyone to become a validator.

In response, Schwartz emphasized XRPL’s unique features, including its decentralized exchange (DEX) and non-native asset support, offering capabilities that other blockchains lack. King, however, dismissed these features as “trust-based” and lacking programmability.

Despite Schwartz’s focus on technology, King remained steadfast, arguing that governance and control issues outshine any technological benefits.

Conclusion

The debate reflects the divide between XRP supporters and critics, particularly Bitcoin enthusiasts. While XRP adherents advocate for its inclusion in the U.S. strategic reserve, Bitcoin proponents argue only Bitcoin qualifies for such recognition.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Coin Edition is not responsible for any losses incurred from content utilization. Readers should exercise caution before making any financial decisions.