Grayscale Criticizes Ripple Network For Payment Support Only

Grayscale Investments, one of the largest cryptocurrency investment organizations in the world, has made some critical comments about Ripple.

On August 21, Twitter account Stefan Huber posted an informational document that Grayscale submitted to the U.S. Securities and Exchange Commission (SEC) outlining the differences between Stellar Lumens (XLM) and XRP.

The tweet reveals why Grayscale chose between XLM as an investment product (Stellar Lumens Trust) and severed all ties with XRP in January 2021.

Grayscale argues that similar to XLM, XRP is a crypto-asset used to facilitate payments quickly and efficiently. However, XRP’s only function is to support payment transactions. Unlike the Stellar network, the Ripple network does not facilitate the creation of cryptographic assets or provide a decentralized exchange platform.

This statement by Grayscale has had a huge impact on the Ripple community. Because, early last week, Ripple was also criticized by Ethereum founder Vitalik Buterin.

And a part of users immediately voiced Grayscale’s views. Account Santiago Velez said that the investment fund was not really “careful” when making such comments about XRP.

It can be seen that the language used by Grayscale in the document seems rather misleading. Because the investment fund used the word “Ripple Network”, that is, it includes both RippleNet and XRP Ledger (XRPL).

In the case of XRPL, it will not be true because XRPL is one of the “heavy weapons” for Ripple to mine into the NFT space and uses sidechains that allow smart contract deployment.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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