The cryptocurrency landscape is constantly changing, and Ripple and the XRP Ledger (XRPL) are currently facing a critical moment as speculation grows about Ripple’s intentions and its potential impact on the XRPL’s integrity. Recent discussions within the cryptocurrency community have raised concerns about Ripple’s role within the XRPL ecosystem, especially in light of its plans to integrate the Ethereum Virtual Machine (EVM) sidechain and introduce smart contract capability through Hooks.
One community member, known as Onledger, has voiced his belief that Ripple, a team highly respected within the community, poses the biggest threat to the XRPL. Onledger claims that Ripple’s adoption of Hooks and integration of an EVM sidechain is an attempt to hide its XRP sales by taking advantage of anonymity. The argument suggests that Ripple wants to wrap its XRP tokens and sell them anonymously, bypassing the transparency provided by native smart contract capabilities.
However, Ripple’s Chief Technology Officer (CTO), David Schwartz, has dismissed these allegations, stating that such drastic measures are unnecessary for a company like Ripple. He explains that Ripple can openly sell its tokens on cryptocurrency exchanges with less scrutiny, even though complete anonymity is not provided. Schwartz argues that Ripple can leverage the privacy offered by cryptocurrency exchanges for its sales.
In response to Onledger’s claims, Schwartz emphasizes that the use of EVM and Hooks is not intended for anonymity but rather to enhance the functionality and versatility of the XRPL. He also highlights that Ripple’s activities are subject to scrutiny by exchanges and regulatory bodies, suggesting that true anonymity would be unachievable regardless of the platform used for token sales.
The allegations against Ripple come at a time when the company is facing legal challenges, particularly regarding the classification of XRP as a security. In July 2023, a US court ruled in favor of the US Securities and Exchange Commission (SEC), declaring XRP offered by Ripple to institutional investors as a security. This ruling raised concerns about Ripple’s sales practices, particularly in relation to On-Demand Liquidity (ODL) services that facilitate cross-border transactions.
Onledger points out these past legal issues, suggesting that Ripple’s adoption of EVM and Hooks may be driven by a desire to evade regulatory scrutiny and maintain anonymity. However, Ripple maintains that its actions are driven by a commitment to innovation and improving the capabilities of the XRPL, rather than an attempt to conceal its operations.
As the debate about Ripple’s role within the XRPL ecosystem continues, it is clear that different perspectives exist regarding the company’s motives and intentions. While some members of the cryptocurrency community express concerns about the potential implications of Ripple’s actions, others believe that these measures aim to enhance the functionality and competitiveness of the XRPL.
As Ripple moves forward with its plans to integrate EVM and Hooks, the cryptocurrency community will closely monitor developments, seeking clarity on the impact on the XRPL’s integrity and transparency. In the dynamic and rapidly evolving world of cryptocurrency, transparency, accountability, and adherence to regulatory standards are crucial to maintaining the trust and confidence of market participants.
