• Ripple recently launched Liquidity Hub, a new product that does not support XRP.
• This led to speculation that the company might be neglecting its own token.
• Ripple CTO David Schwartz and an XRP-based payment solution developer have provided clarity as to why XRP is not included in Liquidity Hub.
Ripple Launches Liquidity Hub
Last week, Ripple launched a new product called Liquidity Hub in order to provide businesses with a simple, seamless way to manage their crypto liquidity needs. However, the product did not include support for the XRP token, which caused much discussion among the XRP community.
Why Isn’t Ripple Using XRP?
In response to this outcry, a Ripple developer responsible for On-Demand Liquidity (ODL) provided some clarity regarding why XRP is not being used in Liquidity Hub. Chief Technology Officer (CTO) David Schwartz has also spoken out about the issue and admitted that revenues from selling XRP account for most of Ripple’s income.
XRP Community Speculations
The speculations from the XRP community center around whether or not Ripple might be neglecting or ditching its own token. Crypto Eri raised various questions as to why this decision was made, such as whether or not Ripple had pulled a Coinbase on the community and if they were planning on holding onto their XRP holdings for an extended period of time while waiting out any potential court rulings.
What Is On-Demand Liquidity?
On-Demand Liquidity (ODL) is a payment solution developed by Ripple that uses blockchain technology and digital assets like XRP to enable instant global payments across different currencies and corridors. The ODL platform allows customers to move money globally quickly and with lower costs than traditional methods would allow.
Conclusion
Overall, it appears that even though there are many unanswered questions about why Ripple is not using its own native token in its new product, there may be valid reasons behind this decision—such as generating revenue from selling tokens and protecting itself against any possible legal issues related to the use of cryptocurrency assets like XRP in certain jurisdictions. It remains unclear what will happen next with regard to how much longer Ripple will continue investing in their own token but hopefully further clarification will come soon so that the whole crypto market can benefit from it.