Ripple's CTO Defends XRP Against 'Vaporware Ponzi' Claims

Ripple's Chief Technology Officer (CTO), David Schwartz, recently defended XRP against claims that it is a "vaporware ponzi" scheme, as argued by a Bitcoin maximalist. The debate, which took place online, centered around the potential inclusion of XRP in the U.S. strategic reserves.

Jonnie King, an investor, initiated the discussion by asserting that XRP is centralized and manipulated by Ripple. He argued that Ripple controls half of the XRP supply through its escrow system, allowing the company to manipulate the price and generate revenue. King also alleged that Ripple could alter the release schedule of escrowed tokens at any time, giving it undue influence over market dynamics.

Beyond market concerns, King pointed to Ripple's political involvement, citing donations made by the company's executive chairman, Chris Larsen, to Kamala Harris's campaign, and contributions to Donald Trump's inauguration following his victory.

Schwartz responded by challenging King to discuss XRP's technology rather than its market mechanics or corporate governance. He asked King to highlight any aspect of XRPL that he found interesting, attempting to steer the conversation away from the popular FUD narrative about XRP. However, King dismissed the request, arguing that XRP's technology was irrelevant if Ripple maintained control over the asset.

King insisted that XRP's design made it inferior to Bitcoin, claiming that its consensus mechanism was based on centralized trust and could be compromised if bad actors colluded within the Unique Node List (UNL). He contrasted this with Bitcoin's proof-of-work model, which allows anyone to become a validator. Schwartz pushed back, emphasizing that XRPL's features, such as its dex and non-native asset support, provided functionality that other blockchains lacked. However, King dismissed the XRPL DEX as "trust-based" and lacking programmability.

The debate highlights the divide between XRP supporters and critics, including Bitcoin enthusiasts. While XRP fans believe the token deserves inclusion in the U.S. strategic reserve, Bitcoin purists (maxis) believe only BTC qualifies for such an initiative.