Crypto lawyer John E. Deaton recently explained why he believes Ripple will not abandon XRP, its native cryptocurrency. His comments come after Ripple announced that the Dubai Financial Services Authority (DFSA) has approved XRP under its virtual assets framework.
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Ripple’s Investments Show Confidence in XRP
According to Deaton, who has represented XRP holders in lawsuits, Ripple has a “fiduciary duty not to abandon XRP.” He points to Ripple’s continued investments in itself as evidence of its long-term commitment to the cryptocurrency.
In 2015, 2016, and 2020, Ripple raised $128 million, $410 million, and $10 billion respectively in funding rounds that valued the company higher each time. Last year, Ripple even bought back its Series C shares at a 50% premium, valuing itself at $15 billion.
Massive XRP Holdings Incentivize Ripple
Deaton argues that with Ripple holding 48-50 billion XRP, worth billions at XRP’s current price, it makes little sense for the company to walk away. If XRP reached $2, Ripple’s holdings alone would be valued at $100 billion.
Essentially, Ripple owning such a large share of the fixed XRP supply gives it a huge financial incentive to continue developing use cases and advancing adoption of the cryptocurrency.
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Recent Win Supports Ripple’s Outlook
Ripple’s continued support for XRP integration, even achieving regulatory approval in Dubai amid its legal battles, shows its long-term commitment to the asset. As Deaton states, Ripple investing in itself during the bear market and before its major court victory supports that it is “not going to abandon” XRP anytime soon.
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