Ripple defends itself against centralization criticism: What now for XRP?

Ripple defends itself against centralization criticism: What now for XRP?

Ripple Labs, the company behind the fourth-largest cryptocurrency XRP, has seen significant expansion in recent months. However, despite these successes, Ripple faces ongoing criticism regarding the decentralization of XRP. A user on Platform X questioned why Ripple CEO Brad Garlinghouse is seen as the face of XRP and the company acts as an issuer while Ripple CTO David Schwarz then replied that XRP does not have an issuer because all coins were created at the beginning of the XRP ledger. Loud BTC Echo XRP has no competing features that would require a different distribution than the original one.

The XRP price is currently at $2.29, which corresponds to a decrease of 2.3 percent compared to the previous week. A dispute continues to rage in the crypto community, particularly between Bitcoin maximalists and XRP supporters. In January, Bitcoin proponents called for a “BTC-only” principle, while the XRP community advocated for a diversified crypto reserve. In this context, Swan Bitcoin’s Brady Swenson called Ripple a “sham” with fake partnerships. Ripple was also accused of aggressive lobbying against Bitcoin. Ripple also has to deal with the legal dispute with the SEC, which classifies XRP as an unregistered security, which also hurts the XRP price.

Challenges and Opportunities for XRP

Given these regulatory challenges, XRP is seen by some as the next Bitcoin. Predictions suggest that legal clarity, institutional acceptance and ETF approval could help XRP achieve similar market success to Bitcoin. XRP was originally developed to enable fast and inexpensive international money transfers. Unlike Bitcoin, XRP does not use a proof-of-work system, but relies on a blockchain consensus model known for fast transactions.

The SEC’s approval of a spot ETF for XRP could significantly boost the price, similar to approvals for Bitcoin ETFs in the past. Investors are showing interest in XRP as the price has shown signs of growth potential in the past through positive news and developments. Furthermore, after a positive decision in the legal dispute with the SEC, XRP could regain investor confidence, which could lead to an increase in its price.

The role of the market

Currently, the price of XRP depends heavily on legal clarification and market conditions. XRP could become a major player in the cryptocurrency market without directly displacing Bitcoin. Analysts see potential for growth, especially if the SEC makes a positive decision for Ripple. However, it should be noted that legal uncertainties can jeopardize investor confidence, which could have a negative impact on the price. With the right support and positive developments, there could be new opportunities for XRP to potentially even experience a “Bitcoin moment.”