Prominent figures in the XRP community argue against investing in XRP while relying on Ripple’s efforts to push the digital asset.
In a recent tweet, prominent XRP influencer Crypto Eri argued that the effort of Ripple alone cannot drive the value of XRP to the moon. The XRP influencer added that she is not an XRP investor relying on Ripple’s effort to build the digital asset’s price.
Moreover, she cited that Ripple’s marketing and sales activities only account for a single-digit percentage of XRP’s trading volume.
Crypto Eri expressed this sentiment in response to other top XRP figures who believe Ripple’s business effort will push XRP beyond bounds. She remarked in a reply tweet to Digital Asset Investor (DAI):
“Unlike DAI, I don’t rely on the efforts of Ripple to build up the price of XRP. Never have, never will. Especially with accounting for single-digit impact on volume.”
Unlike DAI, I don’t rely on the efforts of Ripple to build up the price of XRP. Never have, never will. Especially with accounting for single digit impact on volume. It’s surprising after surviving the SEC attack, anyone would subscribe to this reliance. https://t.co/XG2bA6qsva
— ?Crypto Eri ?Carpe Diem (@sentosumosaba) September 4, 2023
Claims of Ripple’s Efforts To Push XRP
Notably, in his tweet, XRP influencer DAI shared why he is an XRP investor. He highlighted big statements that supposedly came from Ripple about how XRP could revolutionize the global financial landscape.
It included that Ripple allegedly said XRP could be a hedging asset from financial crises and that XRP’s goal is to become a world reserve digital currency. Also, he highlighted Ripple allegedly stated it would be replacing SWIFT.
“This is why I’m here. I believe them,” the XRP influencer proclaimed.
However, Crypto Eri and some other notable XRP figures are at variance with DAI’s view. A renowned attorney, Bill Morgan, known for his pro-XRP stance, simply commented, “You expect profits from the efforts of Ripple.”
You expect profits from the efforts of Ripple. https://t.co/oF7VbAcxrN
— bill morgan (@Belisarius2020) September 3, 2023
Interestingly, “expectation of profits” is one of the four prongs of Howey’s tests that an investment must satisfy to become a security. Crypto Eri expressed shock that XRP enthusiasts would proclaim their involvement in XRP banking on Ripple after the muti-year legal battle regarding the non-security status of XRP.
“It’s surprising after surviving the SEC attack, anyone would subscribe to this reliance.”
Not Only Ripple Building on XRPL
In a similar conversation, Crypto Eri clarified that Ripple is just one of the thousands of firms coming to build on XRP and the XRP Ledger (XRPL). Pro-XRP lawyer Morgan shared a court document from Ripple supporting Crypto Eri’s claim.
Even Ripple agrees with you Eri. This is an extract from Exhibit PX234 which the SEC put into evidence. It is part of an email chain involving Monica Long and others at Ripple on 18.11.18. I took these three pillars to mean sources of value./1 https://t.co/F9BT9Gi2YM pic.twitter.com/kojOLxP8nQ
— bill morgan (@Belisarius2020) September 4, 2023
In the paper, Ripple stated the value of XRP is reliant on retail speculation, projects building on XRPL, and other companies like Ripple building on the ledger.
Therefore, the experts believe investing in XRP relying solely on Ripple’s effort to shoot its value could be a faulty investment calculation.