David Schwartz Compares XRP to iPhone, Amid Node Centralization Woes
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David Schwartz Compares XRP to iPhone, Amid Node Centralization Woes

January 6, 2020      Prashant Jha

David Schwartz, the CTO of Ripple in his latest tweets has drawn parallels between his firm and Apple’s iPhones. The debate was on whether controlling nodes is among the reasons that XRP has still maintained its third position despite not seeing any price uptick throughout 2020. In the conversation, it was argued that Ripple’s control over XRP supply and node operations had been done so that the value of XRP only helps Ripple.

David Schwartz countered the argument saying people don’t care about creating value for others as long as the product is helpful for them. He then brought in the iPhone argument saying he would not stop using iPhones just because it would benefit Apple shareholders.

He further argued that people who think that liquidity token holders have added benefits, they all can buy the tokens to enjoy the same benefits.

Why David Schwartz’s Liquidity Token Holder Argument is Flawed?

Schwartz, in his response, claimed that if people think Ripple gains value because it holds XRP can buy the token themselves to enjoy the same. However, this argument is over-generalizing the issue at hand as holding and issuing billions worth of token are not the same thing. The iPhone comparison also does not sound convincing as iPhone and digital tokens have no similarity on any front, not even the shareholder logic as iPhone has established itself as one of the superior phones in the market.

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Ripple has always been at the receiving end for the centralization in XRP token issuance. However, the company has made several attempts to disperse the argument and have also started to project itself as a technology solution for Banks in cross-border remittance, where they are projecting XRP as liquidity token.

#Centralization #Crypto News #David Schwartz #ripple #XRP
Prashant Jha
Prashant Jha

An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.