Ripple just valued itself at $50 billion and announced a $750 million share buyback. Meanwhile, XRP, the token, is down 62% from its all-time high.
This is an interesting situation: how can a company increase in value while its token doesn’t? My understanding is that their revenue is growing through acquisitions and enterprise licensing, not XRP adoption.
One thing to point out is that Ripple the company and XRP the token are two different things. When we understand that, everything starts to make sense.
At the beginning, Ripple’s pitch to banks was simple: instead of parking millions of dollars in accounts all over the world, just use XRP as a bridge and money could be sent internationally in no time. Great deal you send it in seconds, convert on the other side, done. Cheap, fast, no capital sitting around.
Then Ripple launched RLUSD, their own stablecoin. Now institutions can move dollars on the XRP Ledger without touching XRP at all. No volatility. No regulatory risk (like the SEC ordeal), just dollars on fast rails.
Think about it: if you’re a bank, do you want to use a volatile token as a bridge, or a stablecoin pegged to the dollar? Yeah, exactly. So institutions used Ripple’s technology for messaging and settlement, but settled in their own currencies, and now increasingly with RLUSD. In the end, XRP was always optional, and that changes the perspective.
Ripple is the biggest holder of XRP, and they release 1 billion XRP every month from escrow. That creates constant selling pressure hitting the market every single month. For XRP’s price to go up, new buyers have to outpace that supply. But if institutions are choosing RLUSD instead of XRP… who’s buying? Mostly retail, people like us.
My view is that Ripple, the company, will continue to do great, as we can see from the buyback, and its infrastructure is winning big time. The token’s role within that infrastructure, however, is something I’m not so sure about.
XRP its a great token dont get me wrong the ledger is fast, cheap, and proven great utility. And Ripple still holds billions in XRP, but the path where XRP becomes the dominant global bridge currency? That window we can see is getting smaller.
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