The Chief Market Strategist of Ripple, Cory Johnson and the CEO of Ripple, Brad Garlinhouse had an Ask Me Anything session recently.
Ripple got a lot of attention due to the huge run-up at the end of December and January. However, there was a 70% meltdown across the entire space during the first quarter, Cory mentioned. What does that tell us about the industry? What is Brad’s opinion about the same?
First thing is that the industry is still nascent and Brad has previously said publicly that there continues to be a need for a maturation process in the cryptocurrency space.
According to him:
“The whole industry is going to mature and I think we should expect there to continue to have a lot of volatility in the digital asset market broadly.”
The whole industry, the whole category was roughly down 70% along with XRP, Cory pointed out.
For which Brad said:
“One can argue that XRP has had one of the worst quarters ever and yet Ripple had one of the best quarters ever.”
“Ripple has been relatively unique in the whole ecosystem. We are going to lean in and work with regulators, governments around the world and certainly I spent a lot of time in Q1 doing exactly that and I think it is important to educate and explain that there is still a lot of misinformation out there.”
Further, Brad spoke about why XRP should not be viewed as a security. And he mentioned the following reasons for the same:
XRP is not a share of Ripple. There is a company called Ripple and there is an ecosystem around XRP and an open source technology for XRP. When you buy XRP, it does not give you shares or dividends or access to profits of Ripple.
The XRP ledger is an open source free decentralized technology that exists independent of Ripple. If Ripple, the company were to go away tomorrow, the XRP ledger would continue to operate and exist. It is an important distinction between the independence of both XRP and Ripple, as it has been misinterpreted for a long time now.
Around some of the ICOs there is a real utility in the XRP token and to an extent, it is solving real problem at scale.
Cory continued to say that, it is visible that more companies are taking advantage of the XRP ledger and the reason is that XRP ledger is about 1000 times cheaper per transaction than Bitcoin [BTC] and it is a thousand time faster in transactions than Bitcoin. Other companies are building other capabilities on top of the XRP ledger and it will continue in the same way.
“We want to see the whole ecosystem thrive. Liquidity and volume are key measures of the health of the overall ecosystem. All the participants in the ecosystem benefit from that liquidity.”
Cory added to the point,
“We are doing things as a company to accelerate that liquidity in the markets, we were crispy, especially where we do business.”
The team does a number of incentives and have been proactive in advertising. Now, they have started a new project called ‘Ripple Accelerator Program’ which will be released in Q4. This is where they are using dollars as well as XRP to incentivize the adoption of their technologies and the usage of these.
When Brad moved to Silicon Valley 21 years ago, he says it was similar to a company called PayPal, which is a big name in the industry now.
“I signed for PayPal and got free 20 dollars. This is how we drive networks using incentives as part of those network effects.”
Ripple is one of the companies in the XRP ecosystem that is built on top of the XRP ledger which is a decentralized, open source technology and they are both completely different and independent from each other. It should be clear that XRP is not a security as well.
Further, Brad claimed:
“It’s really frustrating to me that I continue to see journalists that conflate the two in many cases when they know there is a difference and it adds to the confusion. It is clear they are separate and distinct. We will continue to make those points”
Brad concluded by saying:
“More and more companies will be seen building on top of XRP ledger which will make it even more clear. There is still work to be completed and we will keep making those points. These quarterly Q&A sessions are important to be held on a regular basis as there is a lot of misinformation out there. We will keep trying to be proactive while also clarifying and educating about how ripple is doing.”
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