An XRP enthusiast lists ten facts to correct the misconceptions surrounding the coin.
An XRP community member has highlighted 10 points to dispel the misconception surrounding the sixth-largest cryptocurrency and its underlying blockchain technology, XRP Ledger.
In a tweet yesterday, “Sir Clown Sniper” called on Ripple’s CTO David Schwartz and former director Matt Hamilton to criticize any of the points titled “Ten Things the XRP COMMUNITY needs to get right.”
10 Facts About XRP & XRPL
Firstly, the user noted that XRP could not be pegged to traditional financial instruments like gold, silver, etc. His assertion is in response to the widespread speculation, suggesting that XRP could be backed by gold. Recall that in February, Hamilton dismissed this speculation in a tweet.
You can track gold by tokenising it on the XRP Ledger and creating a token such as XAU like companies have been doing for the past decade. But you can’t back XRP itself with gold.
— Matt Hamilton (@HammerToe) February 26, 2023
Secondly, “Sir Clown Sniper,” said it is impossible for XRP to magically become a stablecoin, just like USDT, USDC, and USDC. While many share this sentiment, Xumm Wallet lead developer Wietse Wind created two theoretical scenarios where XRP can be used as a stablecoin. It is noteworthy that Wind’s proposals seem impossible in their own rights.
I guess the only hypothetical way would be if stores and people start pricing goods and services in fixed XRP value, which would only work if their vendors, employees, everyone would do that as well. Never going to happen.
— WietseWind (🛠 Xumm @ XRPL Labs) (@WietseWind) December 29, 2022
Thirdly, the community member pointed out that the stablecoins created on XRP Ledger are not XRP.
Fourthly that the XRP Ledger requires electricity to function.
For the fifth point, the user highlighted that XRP could only exist on the XRP Ledger. He added that anything other than that means the crypto asset is an IOU.
Sir Clown Sniper clarified that the sixth-largest cryptocurrency by market value has no relationship with ISO 20022, the de facto global data standard for modern payments. It bears mentioning that Ripple joined ISO 20022 in 2020, becoming the first member focused on Distributed Ledger Technology (DLT).
Furthermore, the XRP community member said Ripple’s Interledger Protocol (ILP) does not require cryptocurrency to function. Launched in 2015, ILP is a solution Ripple Labs uses for efficient payments across different networks.
In addition, the user notified enthusiasts of the crypto project that all the money in the world “will not run across the XRP Ledger.” This is in response to some community members who believe the XRPL will become the ultimate solution for global cross-border settlements in the future.
For the ninth point, the user notified XRP enthusiasts that the United States government would not buy their tokens from them.
Lastly, he clarified that RippleNet is different from the XRP Ledger.
Ripple’s CTO Says The Points “Are True”
Notably, the points raised by “Sir Clown Sniper” address some misconceptions surrounding the sixth-largest crypto asset and XRPL. The post has stirred up mixed reactions from members of the XRP community.
While some have slammed the user for the post, others have commended him for clarifying these misconceptions.
Interestingly, Ripple’s CTO joined in reacting to the tweet. He confirmed that all the points raised were valid.
“All These Things are True.”
All of these things are true.
— David "JoelKatz" Schwartz (@JoelKatz) April 6, 2023
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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.