Ripple’s Potential Plan: Revitalizing XRPL by Selling XRP to Non-US Venture Capitalists

Ripple, a prominent player in the blockchain industry, recently conducted a swift transfer of 180 million XRP, equivalent to $94 million, within a span of just ten minutes. Although the motive behind these transactions remains unclear, Ripple has been implementing changes to attract investors from outside the United States, which is a significant development.

Reviving XRPL through Venture Capital Funding: A Potential Solution!
Santiago Velez, an expert in blockchain technology, has drawn attention to the substantial growth of Solana, another blockchain platform, which has been greatly aided by major investors. Velez believes that Ripple could achieve similar results with XRP. By selling a portion of its XRP to investors from countries other than the US, Ripple could secure additional funding to expand the XRPL ecosystem and embark on new projects.
However, this argument is challenged by the current situation surrounding Solana. Despite facing outages and being labeled a security threat by the SEC, Solana continues to innovate and experience rapid growth in terms of network utility and adoption. This raises an intriguing question: Why is that the case?
https://t.co/o1OZwwSdQO
— Yassin Mobarak (@Dizer_YM)
February 11, 2024
Drawing parallels with the remarkable growth of Solana, driven by venture capital (VC) investments, Velez proposes a similar strategy to invigorate the adoption and development of XRPL. Notably, Solana has managed to attract substantial support from reputable VC firms, which has immensely contributed to its thriving ecosystem.
Solana has succeeded in capturing the attention of approximately 47 investors, including prominent names like Andreessen Horowitz (a16z), Pantera Capital, Coinbase Ventures, and Paradigm. While the exact amount is undisclosed, Cynegetic Investment made an additional investment in Solana in December.
Conversely, the lack of VC involvement is hindering the growth of the XRPL ecosystem. Velez advocates for Ripple to explore the option of selling XRP to non-US VC firms. By tapping into foreign investment opportunities, much like Solana, Ripple can inject crucial capital into XRPL projects, thereby fostering innovation and driving adoption.
An Opportunity for Ripple to Shine
Velez estimates that Ripple currently possesses approximately 45 billion XRP as of December 2023, and selling it to foreign investors could attract VC funding. However, selling XRP within the United States poses challenges due to legal restrictions, making it wiser to focus on investors from other countries.
The conversation surrounding the current state of the XRP Ledger gained momentum when the host of the Minus Wells Crypto YouTube channel expressed concerns about the delay in implementing Hooks, which would introduce smart contract capabilities. While some individuals worry about increased fees and network traffic, others believe that Hooks could create new opportunities for decentralized finance (DeFi) on XRPL.
Meanwhile, the XRP community holds mixed views on the slow growth of XRPL and its impact on the performance of XRP. While some attribute this sluggish progress to the ongoing legal case with the SEC, others emphasize the significance of continuous innovation in driving the growth of XRPL. Despite the challenges, community members remain optimistic about the potential of XRPL, citing Solana’s resilience in the absence of legal clarity as a noteworthy example.
Tags
Ripple (XRP)