A senior executive at Ripple has disclosed that the company does not assess its success based on the performance of XRP’s price.
This statement came from Eric van Miltenburg, Ripple’s Senior Vice President for Strategic Initiative, during a podcast.
The host questioned Miltenburg about how Ripple manages the emotions of crypto market participants amid cycles of price appreciation and depreciation, particularly considering XRP’s rise years ago, followed by a significant decline
XRP’s Value is Vital to Ripple
Miltenburg acknowledged the trend but emphasized that Ripple remains committed to its mission of solving cross-border payments issues. He admitted that the value of XRP is vital to Ripple, given its advocacy for the digital asset.
Also, he noted that XRP serves a specific purpose in the company’s long-term product strategy. In particular, Miltenburg highlighted XRP’s efficiency as a digital asset for payment use cases, citing its low settlement fees, fast settlement speed, and high transaction throughput.
According to him, XRP is well-suited to address liquidity challenges in the payment landscape. Essentially, the Ripple SVP stressed that the company sees XRP as vital to its broader solution.
Ripple Does Not Measure Success in XRP’s Price
In parallel, Miltenburg emphasized that Ripple has a long-term strategy rather than short-term gains measured in days, weeks, or months.
Based on this premise, he highlighted that Ripple evaluates its success not based on the price of XRP. Instead, it measures it on the value it delivers to financial institutions.
According to him, Ripple determines this based on whether financial institutions are utilizing their technology to facilitate global money transfers. The Ripple SVP disclosed that the adoption trajectory is steadily increasing, which energizes the firm.
Essentially, the upward trend in using Ripple’s technology by financial institutions drives the company’s enthusiasm rather than the value of XRP.
Prominent XRP figure crypto Eri recently called attention to this statement from the Ripple SVP in a post on X.
\"We measure our success not on the price of #XRP …\"
\"…we will, on occasion, we will sell some of that into the market, that #1 generates some incremental funding for us, but also helps create more liquidity…\"
Eric van Miltenburg, @Ripple, currently Senior Vice President… pic.twitter.com/3YS9HVGCfb
— 🌸Crypto Eri 🪝Carpe Diem (@sentosumosaba) February 19, 2024
Ripple Sells XRP for Additional Funding
Meanwhile, Eric van Miltenburg acknowledged that Ripple occasionally sells some of its substantial XRP holdings. Per the disclosure, the XRP sale serves two purposes: firstly, it generates incremental funding for Ripple.
Secondly, it contributes to creating more liquidity in the entire ecosystem. Miltenburg emphasized that having liquidity in markets worldwide for XRP is a crucial factor contributing to the success of Ripple’s products over time.