Crypto analyst Mason Versluis criticizes Ripple’s revenue model, claiming the firm sells XRP to support its business.
In a recent discussion about his exit strategy for cryptocurrencies like XRP, prominent crypto analyst Mason Versluis attacked Ripple and other crypto-based payment firms that have a digital asset associated with them.
Specifically, Versluis argued that payment firms like Ripple lack revenue streams. According to him, they do not generate profits as conventional companies typically do. He also alleged that crypto payment firms rely on associated cryptocurrency to fund their operations.
Versluis considers his view “the TRUTH” behind Ripple supposedly dumping XRP on retail investors.
The TRUTH About Ripple DUMPING $XRP On YOU! ? pic.twitter.com/bH6HD4cPIQ
— MASON VERSLUIS (@MasonVersluis) October 17, 2023
Furthermore, the crypto analyst stressed that this situation is the norm in the crypto space. While he acknowledged there could be exceptions, Versluis contended that projects that do not utilize their tokens for growth often struggle to secure funding. In his words:
“Most of these crypto tokens are in that position where they don’t actually have a real business. Their business was launching a token and selling it to you and then dumping it on you.”
Ripple Uses XRP for Funding
Meanwhile, the analyst went deeper into his attack on Ripple, claiming to understand the firm’s strategy in using XRP for business development. He explained that Ripple’s revenue is closely tied to the performance of XRP, and the token’s value increase is vital for Ripple’s financial success.
“XRP needs to go up for them [Ripple] to make money. They have several different reasons why they would want XRP’s price to go up.”
In parallel, Versluis detailed the increasing circulating supply of XRP tokens over time. He shared charts from the prominent market tracker Messari to back his claim. The chart suggested a steady growth in XRP’s circulating supply since 2013.
Versluis emphasized the negative implication of the increased supply of a token. He argued the price of XRP cannot see a significant uptick amid the steady increase in supply.
Meanwhile, some crypto experts have disputed the argument of XRP’s supply increasing. Panos Mekras, the author of “Understanding the Crypto Economy,” has argued that all XRP tokens existed from the beginning, with 100% of the supply already in circulation.
Mekras believes that locking XRP in escrow, a strategy employed by numerous XRP holders, does not fundamentally alter the fact that the tokens were already circulating.
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.
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