Ripple's Influence on XRP Ledger Sparks Controversy
Ripple's CTO, David Schwartz, counters claims, emphasizing transparency and regulation compliance
March 21, 2024 04:40 PM
Reading time: 1 minute, 33 seconds
TL;DR The XRP Ledger faces significant scrutiny as allegations surface about Ripple's potential threat to its independence. Amidst accusations of concealing XRP sales via an EVM sidechain, Ripple's CTO, David Schwartz, counters claims, emphasizing transparency and regulation compliance.
The XRP Ledger (XRPL) and its relationship with Ripple, the payment company closely associated with it, has recently become a hot topic within the cryptocurrency community.
Concerns have been raised that Ripple, despite its contributions to the ledger's development, might be compromising the ledger's independence and integrity.
A notable figure in the discussion, Onledger, has accused Ripple of planning to obscure its XRP sales through the introduction of an Ethereum Virtual Machine (EVM) sidechain.
Onledger's allegations suggest that Ripple's involvement with hooks and the potential implementation of an EVM sidechain are strategies to 'wrap' XRP and sell it off anonymously, circumventing the transparency offered by native smart contract capabilities.
This has led to a broader discussion about the intentions behind Ripple's technological decisions and their impact on the XRPL.
Ripple's Response
In response to these claims, David Schwartz, Ripple's Chief Technology Officer, has openly refuted the idea that the company is seeking ways to secretly sell XRP. Schwartz argues that if Ripple wished to sell tokens discreetly, using crypto exchanges would pose fewer challenges than the alleged complex strategies involving blockchains and sidechains.
This rebuttal, however, has not fully quelled the community's concerns, with Onledger pointing out discrepancies in Ripple's approach to anonymity and compliance, especially in light of recent regulatory developments.
The controversy has been further fueled by a July 2023 court ruling, which sided with the US Securities and Exchange Commission (SEC) in defining XRP offered to institutional investors as a security. This legal perspective has added layers to the debate over Ripple's practices and their implications for the XRPL's future.
Despite the heated exchange, the core issue remains unresolved, with significant portions of the community polarized over Ripple's influence on the XRPL.
As developments unfold, the cryptocurrency ecosystem watches closely, understanding that the outcome of this controversy could have wide-reaching implications for the XRP Ledger and Ripple's position within it.
