Ripple CEO Garlinghouse has responded to a critical piece from CoinDesk classifying Ripple’s push toward exploring the stablecoin market as a desperate move.
Notably, Ripple recently announced plans to launch a stablecoin on the XRP Ledger (XRPL) and Ethereum networks later this year. However, amid the generally bullish reception to this disclosure, concerns and criticisms have also emerged.
One case involved a critical report from leading crypto publisher CoinDesk. In its article, the crypto-focused media outlet claimed Ripple was failing at what it does, and the stablecoin venture was a desperate move to regain market relevance.
Nonetheless, this opinion has triggered a backlash from industry leaders, including Ripple CEO Brad Garlinghouse, who see it as a baseless attack. Garlinghouse’s comment came as a reply to remarks from Artur Kirjakulov, co-founder and CEO of XPMarkets.
XPMarkets Founder Bashes CoinDesk
In recent post on X, Kirjakulov took aim at the CoinDesk article, contesting the narrative presented by the publisher. He provided insights into Ripple’s current standing and future prospects to counter the assertion that the company is losing relevance.
So…. I have read Coindesk's article…. It paints a rather bleak picture of Ripple and XRP, suggesting Ripple is scrambling for relevance with its new stablecoin venture. But let's dive into the claims and add some much-needed context:
1. "Ripple has struggled to win real…
— Artur (@Kirjakulov) April 4, 2024
Firstly, Kirjakulov addressed the claim that Ripple has struggled to secure real enterprise clients. He pointed out Ripple’s extensive network of partnerships with over 300 financial institutions worldwide.
This substantial backing contradicts the notion of Ripple facing significant hurdles in securing partnerships. The firm has also continued to expand into the custody and tokenization industry with the acquisitions of Metaco and Standard Custody in less than a year.
The CoinDesk article also alleged that XRP is losing relevance in the market. However, in response, Kirjakulov highlighted XRP’s continued prominence as one of the top cryptocurrencies by market capitalization.
He emphasized its ongoing utilization in international transactions and liquidity management by various financial entities, especially within Ripple’s On-Demand Liquidity (ODL) service (now Ripple Payments).
Kirjakulov: Ripple Stablecoin Venture Not a Desperate Move
Kirjakulov also challenged the characterization of launching a stablecoin as a desperate move, comparing it to similar initiatives by other major firms like PayPal. He emphasized that such expansions are not signs of failure but rather adaptations to the evolving crypto scene.
He also addressed Ripple’s legal troubles with the SEC, which CoinDesk spotlighted as one of the reasons the company is looking for a new source of revenue. Kirjakulov stressed that Ripple is not unique in facing regulatory scrutiny within the industry.
He suggested that the outcome of the SEC vs. Ripple legal dispute could have broader implications for crypto regulation, underscoring Ripple’s significance in shaping the industry’s future.
Furthermore, Kirjakulov questioned the portrayal of partnership fallouts without context, noting that shifts in partnerships are common in the dynamic fintech and crypto sectors. Notably, CoinDesk had highlighted the failed partnership between Ripple and MoneyGram.
Kirjakulov challenged the claim that Ripple’s services, particularly RippleNet and On-Demand Liquidity, were losing traction. He noted that numerous financial institutions have continued to leverage the services for cross-border payments.
Ripple CEO Reacts
In response, Ripple CEO Brad Garlinghouse echoed Kirjakulov’s sentiments, describing the piece as “embarrassing for the industry.” He criticized CoinDesk for allowing “childish antics” to overshadow its credibility as a leading source of crypto industry coverage.
To put it mildly, its embarrassing for @CoinDesk.
It's embarrassing for the industry. But as @Kirjakulov points out – these are the kinds of people (a 'deputy editor') holding the whole industry back.
Childish antics masquerading under what should be a credible brand that…
— Brad Garlinghouse (@bgarlinghouse) April 5, 2024
Garlinghouse expressed concern over the prevalence of tribalism within the blockchain community, urging unity in the face of resistance from legacy financial systems. He emphasized the need for cooperation to overcome industry challenges and drive innovation forward.
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