Ripple’s Stablecoin Venture
Ripple, the company behind XRP, recently announced its plans to launch a stablecoin. This move sparked a public feud with Coindesk, a cryptocurrency news outlet.
Ripple CEO’s Criticism
Ripple CEO Brad Garlinghouse slammed a Coindesk article that portrayed their stablecoin venture as a sign of desperation. He called the article “embarrassing for the industry” and accused Coindesk of unprofessionalism.
Coindesk’s Claims
The Coindesk article, written by Daniel Kuhn, suggested that Ripple’s embrace of stablecoins could signal the decline of XRP. Kuhn argued that Ripple might be seeking new revenue streams due to its legal battle with the SEC over XRP’s classification as a security.
Ripple’s Stablecoin Details
Ripple’s stablecoin will be fully backed by US dollar deposits, government bonds, and cash equivalents. It will initially be available on the XRP Ledger and Ethereum blockchains.
Ripple’s Future
Coindesk raised concerns about Ripple’s core product, On-Demand Liquidity, which facilitates cross-border payments. The article claimed that ODL has failed to gain traction due to XRP’s volatility.
Despite these claims, Ripple supporters remain optimistic. They point to the company’s partnership with American Express and XRP’s continued position among the top cryptocurrencies by market cap.
Industry Dynamics
The clash between Ripple and Coindesk highlights the complex dynamics within the cryptocurrency industry. As Ripple navigates its legal battle, its decision to enter the stablecoin market raises questions about the future of XRP.
