• Ripple recently launched its new product, Liquidity Hub, which does not support the XRP token.
• This caused an uproar in the XRP community speculating whether the company will ditch and neglect the token.
• Ripple’s CTO David Schwartz has clarified why XRP isn’t being used in the product, while a Ripple developer provided more information on On-Demand Liquidity (ODL).
Ripple Launches Liquidity Hub
Last week, Ripple launched a new product called Liquidity Hub to provide businesses with an easy way to manage their crypto liquidity needs. However, this generated much discussion within the XRP community because it doesn’t support the XRP token.
Reasons for Not Supporting XRP
A Ripple developer responsible for On-Demand Liquidity (ODL) clarified why XRP is not being used in the new product. Meanwhile, Chief Technology Officer (CTO) David Schwartz also spoke out about it. He admitted that most of Ripple’s revenue comes from selling its holdings of XRP tokens, but noted that holding onto them is generally seen as preferable.
Speculation About Future of XRP
The lack of support for XRP led some members of the community to speculate whether or not Ripple would continue to invest in and develop around it. Despite these concerns, there has been no indication that this will be the case and reports suggest that other plans are in place to help grow its usage outside of Liquidity Hub.
XRPL Labs Developing Solutions
In addition, independent development team XRPL Labs is looking into creating solutions to make it easier for businesses to use ODL with lower fees than what banks offer right now. The team has already released two products – xumm and payment channels – both aimed at reducing transaction costs while providing enhanced security features when making payments with XRP.
Overall, despite some initial confusion over why Liquidity Hub does not include support for XRP, both Ripple and independent developers are still investing time and effort into making sure that businesses can benefit from using this cryptocurrency as part of their payment solutions. As such, it seems likely that any worries about Ripple ditching its native token are unfounded at this stage..