Bitcoin maximalists criticized Ripple, arguing that BTC is a superior store of value, while Brad Garlinghouse called for industry collaboration.
Just as Donald Trump signed the executive order for creating a digital asset stockpile, the Ripple and Bitcoin communities engaged in a strong war of words debating over XRP reserves. Bitcoin maximalists have lashed out at Ripple supporters explaining why BTC is a better store of value.
However, Ripple CEO Brad Garlinghouse recently stated that “maximalism” has been impacting the broader crypto market. This was enough to cause the spark to take this debate even further. Garlinghouse stressed that the crypto industry’s potential could be fully realized if its participants focus on collaboration rather than competition.
The Ripple CEO also emphasized that a government-backed digital asset reserve should represent the broader crypto ecosystem rather than favoring a single token, such as Bitcoin BTC $94 618 24h volatility: 0.3% Market cap: $1.88 T Vol. 24h: $23.03 B or XRP XRP $2.23 24h volatility: 2.5% Market cap: $130.11 B Vol. 24h: $2.56 B . “If a govt digital asset reserve is created – I believe it should be representative of the industry, not just one token (whether it be BTC, XRP, or anything else),” he said.
Is Ripple Lobbying for XRP Reserves?
Some players from the Bitcoin community have accused Ripple of lobbying for XRP reserves. Soon after Trump’s executive order last week, Jack Mallers, CEO of Zap, a Bitcoin payments company, said:
“I can confirm Ripple is actively spending millions of dollars trying to undermine a strategic Bitcoin reserve in the United States of America. This is not just an attack on Bitcoin, but on principles of transparency, on fairness, and on our national security”.
Shortly after, other pro-Bitcoin voices in the crypto community joined the discussion, proposing similar theories. They claimed that Ripple, which holds tens of billions of dollars in XRP, has taken steps to block the creation of a strategic Bitcoin reserve.
According to these theories, Ripple’s motive was to secure XRP’s inclusion in any potential digital asset stockpile. Last week, Pierre Rochard, VP of Research at Bitcoin mining firm Riot Platforms said:
“The biggest obstacle for the Strategic Bitcoin Reserve is not the Fed, Treasury, banks, or Elizabeth Warren. It’s Ripple/XRP. They are aggressively lobbying against the SBR by throwing around $millions at politicians, desperately trying to derail it”.
Pro-XRP Lawyer Slams Bitcoin Maxis
Hailey Lennon, partner at Brown Lutnick LLP stated that a massive 45-55% of the XRP supply is in the hands of Ripple Labs with executives often offloading their supply. She added that such is not the case with Bitcoin, as XRP supporters talk about the concentration of BTC with BlackRock of Satoshi Nakamoto.
“Blockrock holds 2-4% of Bitcoin and its mainly their customers’ funds. Satoshi’s wallets hold 5% and it’s never moved or been sold”, Lennon added.
Pro-XRP lawyer Bill Morgan responded to her. “Another egregious lie. Spreading 2018 data. The amount XRP holds in escrow is now under 38%. Ripple’s ownership percentage of XRP is falling. The percentage of Bitcoin MicroStrategy and Blackrock own is increasing. What will you say in a few years when the % ownerships cross,” he wrote.
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