XRPL Architect Debunks XRP Price Misconceptions

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David Schwartz, Ripple’s CTO and XRP Ledger architect, dispels misconceptions surrounding XRP’s price dynamics

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David Schwartz, the chief technology officer (CTO) at Ripple and a key architect of XRP Ledger (XRPL), recently addressed misconceptions surrounding the price dynamics of the popular cryptocurrency XRP. In a social media exchange, Schwartz clarified several points, including the relationship between staking, securities regulations and XRP’s utility as a payment asset.

The conversation began with queries regarding the potential classification of staking as a security and its implications for cryptocurrencies like Ethereum (ETH). Schwartz responded by questioning the logic behind such classification, emphasizing that staking itself is not a tradable asset and does not involve transactions typically regulated under securities laws.

Another point of discussion was whether XRP’s efficiency as a payment asset hinges on its price. Schwartz affirmed that a higher price for an asset with a fixed supply, like XRP, enhances its practicality for payments and intermediation. He dismissed the notion that Ripple desires a lower XRP price for payment utility as “nonsensical.”

Presently, XRP is valued at $0.63, with Ripple reportedly holding over 40.1 billion XRP in escrow accounts.

XRP to USD by CoinMarketCap

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Schwartz’s remarks come amid ongoing debates within the community regarding the fundamental drivers of cryptocurrency. With XRP’s price and its role in Ripple’s ecosystem under scrutiny, Schwartz’s explanations aim to provide a clearer understanding of XRP’s value proposition and its relevance in the broader crypto landscape.

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