A pro-XRP influencer on X – formerly Twitter – Crypto Eri highlighted reasons why Ripple Labs cannot abandon its native token. According to the tweet, the recent developments at Ripple are steps the company needs to take to be an “Amazon.”
Lately, the XRP community has battled with rumors that the payment giant may ditch its native token for other tokens. However, Eri clarified that the introduction of other tokens into the Ripple ecosystem is to meet business operation demands.
According to her, Ripple cannot abandon the token because it is holding a substantial amount of the token, worth billions. She added that the company considers holding XRP as a strategic weapon, highlighting a previous statement from Ripple’s CTO, David Schwartz.
Furthermore, she referenced an interview of a Ripple Developer, which reflected the current developments. As per the video, the developer said Ripple Labs will use more tokens for its transactions later. Additionally, he mentioned that this will be based on the customer preference.
Ripple Labs, which is one of the biggest crypto payment companies in the world, focuses on cross-border international payments. While traditionally, it has used XRP for this, the company has now introduced stablecoins to facilitate transactions.
In particular, Ripple added Circle USD (USDC) and Tether USD (USDT) to its Liquidity Hub product expansion to Australia and Brazil but left out XRP. The decision by the company raised concerns that suggested the company might be dumping its native token.
The concerns, however remote, are not unfounded. The company’s prolonged lawsuit with the SEC has bothered mainly on the securities status of XRP. Despite the court decision in July, which offered clarity in this regard, the SEC has remained relentless in its action.
Furthermore, the company, following the decision, stated that the lawsuit affected its business. It also mentioned that the case led to partnership fallout and stunted adoption within the U.S. and other countries.
However, several members of the XRP community have accused the company of deliberately slowing down the growth of the token. They claim that with legal clarity now ascertained, the token should have seen more utility.
