2024

David Vance

<figure>
 <figcaption>
 Cover image via <a href="https://u.today/" rel="noopener noreferrer nofollow">U.Today</a>
 </figcaption>
</figure>
<a href="https://x.com/JoelKatz/status/1774219593453863202?s=20" rel="noopener noreferrer nofollow">David Schwartz</a>, 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&nbsp;<a href="https://u.today/xrpl-xahau-sidechain-activates-crucial-amendment-hits-major-decentralization-milestone" rel="noopener noreferrer nofollow">XRP</a>. 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&nbsp;<a href="https://u.today/ethereum-receives-hidden-bullish-signal-amid-new-all-time-high" rel="noopener noreferrer nofollow">Ethereum (ETH)</a>. 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&nbsp;<a href="https://u.today/xrp-alert-16-million-xrp-bought-by-single-whale-on-major-korean-exchange" rel="noopener noreferrer nofollow">XRP price</a> for payment utility as "nonsensical."
<blockquote>
 I did say that the higher the price of an asset with a fixed supply, the more practical it is to use that asset for payments or as an intermediary asset. The argument I was responding to at the time was that Ripple would like to see the price of XRP go down because XRP would be…— David "JoelKatz" Schwartz (@JoelKatz) <a href="https://twitter.com/JoelKatz/status/1774219593453863202?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">March 30, 2024</a>
</blockquote>
Presently, XRP is valued at $0.63, with Ripple reportedly holding over 40.1 billion XRP in escrow accounts. <img alt="::" data-entity-type="file" data-entity-uuid="eb6c283e-968a-4be7-8624-bc5c7d8d03fc" src="https://u.today/sites/default/files/inline-images/xrpprice_4.png">XRP to USD by <a href="https://coinmarketcap.com/currencies/xrp/" rel="noopener noreferrer nofollow">CoinMarketCap</a>
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.

XRPL Architect Debunks XRP Price Misconceptions

U_Today

Other articles published on Mar 31, 2024

Impact of Altcoin Supply Releases on Market Prices

Bitcoin Poised to Hit $170,574 Within 12 Months

3 Coins Ready to Take Off Like Book of Meme (BOME) and 50x Your Money By the End of 2024: Retik F...

Pepecoin Millionaire Purchases New 1000X Cryptocurrency After Pepe (PEPE) Price Falls

Optimism and Immutable X Recover While Rebel Satoshi’s New Token ($RECQ) Goes for Millions on Pre...

Merging Meme Appeal with Market Strength as Koala Coin (KLC) Attracts ETC and XRP Followers

Join our free newsletter for daily crypto updates!