In his latest tweet, Ripple’s chief technology officer David Schwartz compares XRP, the third largest cryptocurrency, to an iPhone to prove that you don’t want to give his company money.
He states that people don’t necessarily care who else they create value for as long as they are able to enjoy the benefits of a certain product.
The truth is though that nobody really cares that much who else they create value for. They care what features and advantages something can provide for them. I don’t avoid an iPhone because I don’t want Apple stockholders to make money. Why do I much care who makes money?
— David Schwartz (@JoelKatz) January 6, 2020
“Negligible” XRP sales continue to stir up hot debates
As reported by U.Today, Schwartz recently got involved in a fruitful debate with XRP naysayers who alleged that Ripple ran an ICO to raise funds for future development. He is convinced that investors no longer buy the cryptocurrency to enrich the company’s ecosystem and see the token go up in value.
Ripple is funded by venture capitalists and angel investors, and, in Schwartz’s words, the amounts of their controversial XRP sales are “negligible.” The semantics of this word can be arguably disputed since the blockchain monolith, which is now valued at $10 bln after a $250 mln funding round, has sold more than $1.2 bln worth of XRP since in two years.
Schwartz is defending XRP after he publicly stated that he was concerned about the token’s distribution back in September 2019.
XRP and Apple. Does it make sense?
While the comparison between XRP and Apple might seem random, Schwartz wanted to emphasize that XRP investors also buy the tokens for other reasons than price speculations. This reverberates the statement made by Ripple CEO Brag Garlinghouse who claimed that only cryptocurrencies with real use cases would survive while 99 percent of all digital assets would eventually go to zero.
XRP is a blazing-fast cryptocurrency that is used for facilitating fast cross-border payments but it would be too far-fetched to compare its disruptive power to an iPhone. Many critics believe that it’s an illegal security that is meant to generate a revenue stream for the company.
Economist Alex Krüger said that it wasn’t illegal to sell “useless products” while taking a jab at XRP.
Can XRP be compared to an iPhone? Share your take in the comments!