Ripple, known for its transaction solutions, is in the spotlight due to its significant XRP holdings, prompting discussions among crypto investors.
Ripple as an XRP Treasury
According to Hunter Horsley, CEO of Bitwise Asset Management, Ripple may soon become a treasury company like MicroStrategy due to controlling 42% of XRP’s supply. 'Ripple could potentially be seen as an XRP Treasury Company in 12 months,' Horsley said in a post on X, igniting a heated debate in the crypto community.
Criticism and Defense of Ripple
Some investors express concerns regarding the high concentration of tokens, viewing it as a risk that threatens decentralization. Others, like analyst Jungle Inc., defend these holdings, claiming they are essential for funding the company's development efforts, including bank integrations and its battle with the SEC. Additionally, there is a growing trend of companies adopting XRP as a treasury asset.
Future of Ripple and XRP
While Ripple has not announced any changes in strategy, there is increasing interest in XRP as a treasury asset. This creates ambiguity regarding the roles of the company and its token, underscoring the importance of their holdings. Speculation about Ripple transitioning to a MicroStrategy model continues to capture the interest of experts and investors.
Ripple's XRP holdings are more than a curiosity; they are becoming a defining feature of its evolving identity. Time will tell how the company will address growing investor concerns.
