Ripple’s new product, Liquidity Hub, has sparked debate among the XRP community, as it does not support the XRP token. There have since been speculations that the company might be neglecting or ditching XRP altogether. However, a Ripple developer responsible for the XRP-based payment solution On-Demand Liquidity (ODL) has provided further clarity on the issue, as has Ripple’s CTO, David Schwartz.
In a blog post last week, Ripple announced that Liquidity Hub was now officially open for business. The product was designed to provide enterprise customers with “a competitive advantage in a multi-asset future.” However, the XRP community found it confusing that XRP was not part of the product.
Crypto Eri, one of Twitter’s most well-known XRP influencers (@sentosumosaba), raised several questions regarding the decision. David Schwartz admitted in response to a question that the company generates most of its revenue from the sale of its XRP holdings. He further explained that there is nothing else Ripple can realistically do with its XRP, and the general consensus is that it would be better if Ripple held less XRP.
The decision to not include XRP in the new product is odd, given the importance of the token to the company. However, Ripple’s Neil Hartner, a senior software engineer who works on cross-border ODL payments, explained that there is a significant difference in the concept of the two products. Licensing requirements are different between Liquidity Hub and ODL. With ODL, payment is settled between the sender and receiver, and Ripple is not a counterparty. With Liquidity Hub, Ripple is in the middle.
The question remains, though, whether Ripple made the decision merely because of the open legal dispute with the US Securities and Exchange Commission (SEC). If so, XRP could very likely be added to the new product after a victory in court. However, this could take several years in the worst-case scenario if the case goes all the way to the Supreme Court.
At press time, the XRP price stood at $0.5130, still consolidating while making higher lows on the 4-hour time frame.
In conclusion, the decision by Ripple not to include XRP in its new product, Liquidity Hub, has sparked debate among the XRP community. While some have speculated that Ripple might neglect or even ditch XRP, a Ripple developer and the company’s CTO have provided insights into the issue. The differences in licensing requirements and the ongoing legal dispute with the SEC may have influenced Ripple’s decision. Nevertheless, XRP remains a significant part of Ripple’s revenue, and the community will be watching closely to see how this issue progresses.
