VanEck questions the utility of Ripple’s XRP, citing lack of financial benefits.
The token XRP offers no financial benefits to users, and the XRP Ledger network lacks real-world application, according to Matthew Sigel, head of digital asset research at VanEck.
“Dear XRP maximalist. I may never understand what your ‘blockchain’ actually does, but I will always respect the passion required to pretend it does something. So keep showing enthusiasm!” he addressed the community members, traditionally known as the XRP Army.
In response, commentators pointed to projects being implemented on the XRP Ledger. As an example, they noted a recent initiative involving Ondo Finance and BlackRock to tokenize U.S. government bonds using Ripple’s network.
Sigel stated that such solutions offer no benefits to token holders.
“I am unaware of any fee collection, revenue distribution, burning, or other economic linkage,” the expert continued.
Opponents argued that XRP is not a speculative asset like Bitcoin, whose blockchain is not scalable. The value of the token will grow as its network usage expands, critics of Sigel’s opinion emphasized.
Participating in the discussion, still technical director of Ripple, David Schwartz confirmed that the concept of XRP does not involve generating passive income.
“The essence of blockchain is that it operates on the principle of ‘no middlemen, be your own bank’ or ‘I don’t care that I can’t tax others for passive profit,'” Schwartz added.
In late October, the utility of XRP was questioned by The Wolf Of All Streets podcast host Scott Melker.
He noted that amid the boom in stablecoin usage in payments, it was logical for Ripple to release its own dollar-pegged coin, RLUSD. What role remains for XRP, Melker considered unclear.
Co-founder of XAO DAO Santiago Velez responded that the primary function of the token is to serve as a neutral intermediary currency for settlements without a central issuer. This avoids the counterparty risk inherent in stablecoins, which are essentially just IOUs.
