Dilip Rao, a former Ripple executive, stirred controversy in 2018 when he declared XRP was primarily intended for institutional investors rather than retail traders.
During a Global Islamic Economic Summit in Dubai, Rao addressed concerns about the speculative nature of cryptocurrency trading, particularly focusing on XRP. While acknowledging the burgeoning retail market for XRP, he emphasized Ripple’s strategic focus on positioning the digital asset as a tool for large-scale financial transactions.
Rao argued that the company’s goal was to establish coin as a bridge currency for institutions, enabling seamless cross-border payments. He highlighted a shift in Ripple’s sales, with a growing proportion of XRP being acquired by institutional clients. This trend, he suggested, signaled a maturation of the XRP ecosystem and a move away from its speculative image.
However, the landscape has dramatically changed since Rao’s 2018 comments. While XRP remains a top-ten cryptocurrency by market capitalization, its trajectory has been impacted by regulatory challenges. Ripple is currently embroiled in a high-profile legal battle with the U.S. Securities and Exchange Commission (SEC) over allegations of unregistered securities sales.
Also Read: XRP Ignites 20% Rally Amidst $2 Trillion Market Rebound – $0.65 Next?
Despite the regulatory uncertainty, coin has maintained a dedicated following, with many investors believing in its long-term potential. Rao’s assertion that coin is primarily for institutions has only fueled this optimism, as it suggests a strong foundation for the digital asset’s value proposition.
While the future of XRP remains uncertain, the evolution of its use case from a speculative asset to a tool for institutional finance is a narrative that continues to unfold. As the cryptocurrency industry matures, the role of digital assets in the global financial system will likely become clearer.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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