Flare Networks co-founder Hugo Philion reveals his assumptions about XRP’s post-legal resolution trajectory, raising debates over its use cases and future challenges.
In a recent tweet, Hugo Philion, co-founder of Flare Networks (FLR), expressed his insights on the anticipated trajectory of XRP following the resolution of the legal case.
“I have always assumed that XRP would sell off hard after the case ended,” Philion remarked.
He elaborated on his assumption, noting that it was because cross-border transactions were supposedly the primary use case for XRP. According to him, Ripple has predominantly been the key driver of the course.
I have always assumed that XRP would sell off hard after the case ended. This is because the primary (but not only) usecase for XRP is (and has always been) cross border transactions and the primary force behind developing this market is still Ripple. Since late 2020, Ripple have…
— Hugo Philion ☀️ (@HugoPhilion) August 5, 2023
Furthermore, Philion claimed that the regulatory uncertainty surrounding Ripple’s operations hindered its ability to advance the cross-border payments market.
Despite the recent regulatory clarity Ripple obtained, he argued the company now faces a substantial setback of nearly years in its developmental endeavors.
Philion mentioned that during this time, alternative options, particularly stablecoin providers, have emerged as viable alternatives. He added that the rivals established a foothold in the market regardless of higher friction.
It is worth noting that Ripple has clarified that the multi-year legal battle has not hindered its progress, as The Crypto Basic reported.
Nonetheless, Philion expects Ripple to make gradual strides in cross-border payments, particularly in underserved corridors within traditional financial systems. However, he acknowledged the heightened wariness from traditional finance towards the crypto space.
He believes the distrust stems from incidents like the bankruptcy of the FTX exchange, led by Sam Bankman-Fried.
In a contrasting perspective, Philion acknowledged the ongoing efforts by various stakeholders to cultivate more use cases for XRP and the XRP Ledger.
XRP Community Counters
Meanwhile, the XRP community challenged Philion’s claim about XRP’s use case. Panos Mekras, a prominent figure in the XRP community, questioned the assertion that cross-border transactions were the primary use case for XRP.
Another XRP figure pondered Philion’s motives for sharing his assumptions. He wondered why he would highlight potential challenges for XRP and Ripple’s endeavors.
Meanwhile, another commenter asserted that Philion’s commentary was surprising considering the perceived failure of his Flare Networks project.
“Writing all this when FLR is the biggest disappointment in all of crypto is crazy,” the XRP enthusiast proclaimed.