Does Ripple Have a Problem Holding XRP In His Hand? Famous Name Commented
coinputin.com – The co-founder and head of research and development at Block Digital made the remarks about Ripple’s stake in XRP.
With real vision, in a new interview in Santiago Velez supply Ripple XRP have more than half of total third-biggest crypto currency the market value of the controversial question whether it would hamper will help grow according to whether or tackles.
Velez says the assets Ripple owns pose a risk and says Bitcoin faces a similar problem with whales who may decide to sell large amounts of BTC on the open market. Velez says that traditional investors also face this type of risk. Amazon investors, for example, agree with the idea that one day Bezos may decide to sell AMZN shares and put surplus supply on the market as well.:
“There are many criticisms directed at Ripple at the company. They are the biggest owner of XRP, the biggest criticism is in this direction. They represent the enormous counterparty risk that can come to the market, and you, as a token investor, are basically exposed to this huge shift. The difference between Amazon shareholders is that they can create new shares, share shares, things like that. But you can’t do that with the known total supply. All you can really do is play within 99 or 100 billion XRP. This is your maximum allowance.”
Praised Ripple’s Transparency
Velez praises ripple’s transparency in XRP assets and says it is one of the most transparent companies in crypto:
“For me, XRP is one of the ecosystems that is the most transparent. There is the fact that Ripple passed this on to the community. They don’t have to do this. There was no obligation to put XRP into these Escrow contracts, but they did it anyway, and they report exactly how much they gave, how much they sold. This is another important transparency. They report exactly how much they sold.”
Ultimately, Velez says, XRP’s value proposition is very different from Bitcoin’s. Rather than being an alternative store of value, he says, XRP’s growth will depend on the benefit it gets in the payments world.
XRP-based remittance platform On-Demand Liquidity, for example, offers an example of how XRP can give financial institutions a way to quickly transfer money to global markets without the need to hold various currencies. This, in turn, is important for the value of XRP and Ripple.