Controversy in the XRP Community
Matthew Sigel, who heads research for digital assets at VanEck, has sparked controversy in the XRP community by casting doubt on the cryptocurrency’s utility. In a provocative social media statement, he expressed his confusion regarding the real functionalities of XRP, stating, “Dear XRP maxis, I may never understand what your ‘blockchain’ actually does, but I’ll always respect the passion required to pretend it does something.”
Questioning Developer Interest
Following this, Sigel questioned the genuine interest of developers in building meaningful applications on the XRP network, an essential aspect for assessing the viability of any blockchain. He contrasted Bitcoin’s widespread adoption among institutional investors, including large university endowments and sovereign wealth funds, against XRP’s more limited acceptance. Sigel highlighted that various governments support Bitcoin mining in 12 countries, largely due to its advantages in integrating with electrical grids.
Scrutiny of Ripple’s Partnerships
Despite the backlash from the XRP community, Sigel continued to scrutinize Ripple’s numerous partnerships, such as those with BlackRock and OntoFinance. He challenged whether these collaborations provided actual financial benefits to XRP holders, mentioning that XRP lacks essential economic mechanisms—like transaction fee models, revenue sharing or token burns—that directly link its price to the success of Ripple’s initiatives.
VanEck’s Position in the Crypto Space
VanEck’s ongoing engagement in the crypto space, particularly concerning ETF filings, was also underscored. The firm is moving ahead with plans to introduce a spot Solana (SOL) ETF in the U.S., yet has not sought to initiate an XRP ETF, positioning itself alongside other major financial players like Fidelity and BlackRock, who are similarly hesitant.
Conclusion
In closing, Sigel maintained a laissez-faire perspective towards investments in XRP, stating, “Anyway by all means, invest away in XRP. I’m not stopping you.”
