XRP Critic's Perspective: Understanding the Bigger Picture

An established XRP commentator is challenging the common criticism of Ripple’s business model. They argue that skeptics misunderstand the purpose behind Ripple’s XRP sales. Instead of merely trading the crypto asset for traditional assets, these sales fund critical infrastructure to enhance XRP's long-term utility and value.

Key Takeaways

Ripple's XRP sales are aimed at funding infrastructure rather than simply acquiring traditional assets.
XRP should be seen as a strategic asset with significant potential, not just operating cash.
The acquisitions Ripple makes serve to strengthen the utility of XRP as a settlement tool, rather than replace it.
The ultimate goal is to make XRP indispensable in the payment landscape through strategic growth and partnerships.

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What Critics Don't Understand About XRP

Will Taylor, the founder of CryptoInsightUK, recently took to social media to address common critiques of Ripple’s approach. He claims that those who criticize XRP sellers are close to understanding the situation, but they misinterpret a crucial aspect. Instead of viewing Ripple's token sales as an attempt to convert a volatile asset into stable, conventional assets, Taylor believes these sales are crucial for funding projects that enhance XRP's long-term value and functionality.

“Haters often say that Ripple sells XRP to acquire real-world companies and assets, suggesting this is how Ripple generates revenue,” Taylor remarked. “However, this perspective fails to grasp Ripple's business model and, ultimately, the direction of its operations. While Ripple does monetize some XRP, it isn't done to replace XRP with traditional assets.”

According to Taylor, this confusion arises from viewing XRP as cash for operations, rather than a powerful, strategic asset. He explains that it's illogical for a significant holder of an asset with immense upside potential to sell it off simply to accumulate conventional companies, especially if that asset could outvalue the firm’s entire balance sheet.

“If you own about 40% of an asset that could be worth more than your total assets at scale, you wouldn’t treat it like cash,” he stated. “You wouldn't think: ‘Let’s sell our most valuable asset just to acquire standard companies.’ That would be counterproductive.”

Continuing his argument, Taylor reframes Ripple’s acquisitions and integrations. He sees them not as a departure from XRP but rather as tools that increase the likelihood of XRP becoming a viable global settlement currency. Through the acquisition of traditional assets, Ripple enhances distribution, compliance, and liquidity—all contributing factors that would make XRP even more useful for large institutions.

“When Ripple integrates with companies like Hidden Road or develops stablecoin infrastructure, these are not intended to replace XRP," Taylor emphasized. “Instead, they function as multipliers. These companies are essential for the efficient operation of XRP.”

He describes this relationship as a flywheel effect: XRP is central to Ripple’s strategy, supporting its growth across payments and liquidity. As institutions begin to adopt this setup, XRP positions itself as a neutral settlement layer, leading to increased demand over time. In this context, Taylor suggests that short-term monetization should be seen as smart capital investment aimed at creating a robust network effect, instead of simply diluting the asset's value.

“That shouldn’t be viewed as dilution, but as capital investment,” Taylor clarified, indicating that if Ripple's focus were merely to be a traditional financial services company, it wouldn’t prioritize a neutral settlement approach or strive to embed XRP within regulated frameworks.

Understanding this distinction is crucial, as it alters how outsiders perceive Ripple's motivations. In Taylor's framework, the goal is not to pivot XRP into traditional assets; rather, it is to leverage off-chain assets—such as licenses and liquidity venues—to increase the necessity of XRP as a settlement solution.

“The ultimate goal is not: ‘Sell XRP to buy assets,’” he concluded. “Instead, it’s: ‘Utilize traditional assets to make XRP indispensable.’”

At the time of reporting, XRP was trading at $1.8773.

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XRP trades below the critical resistance zone as shown on the 1-week chart | Source: XRPUSDT on TradingView.com