XRP Criticized as Ripple Hesitates on Strategic Reserve

XRP has once again sparked debate among crypto experts, as Ripple faces criticism for not adopting a strategic reserve strategy similar to Michael Saylor’s Bitcoin initiative.

Recently, a prominent figure in the XRP community, known simply as Gordon, shared an analysis claiming that if MicroStrategy had invested in XRP instead of Bitcoin since August 2020, the company would have seen double the returns. According to the data cited, MicroStrategy’s actual Bitcoin portfolio currently holds a value around $70 billion, whereas an equivalent investment in XRP would have surged to nearly $140 billion.

This compelling comparison ignited conversations online, prompting financial expert Gary Cardone to weigh in. He firmly challenged the notion that Michael Saylor’s enterprise would have benefited more from XRP. Cardone argued that any diversion from Bitcoin would have subjected MicroStrategy to intense legal scrutiny and potentially bankrupted the company. “He already has the money and does not need to rename it to XRP,” Cardone stated, downplaying the suggestion that XRP could have outperformed BTC safely on such a corporate scale.

However, Cardone took the discourse a step further by turning the lens onto Ripple itself. If XRP is as promising as some proponents believe, he questioned why Ripple hasn’t emulated Saylor’s model by allocating part of its corporate balance sheet toward an XRP reserve. He pointed out what he perceives as a contradiction — the XRP community frequently touts the long-term value and utility of the token, yet Ripple seems hesitant to back it more aggressively through measurable financial strategies.

Cardone emphasized that Ripple’s reluctance to create an XRP reserve casts doubt on the company’s confidence in its token. Asking critical questions, he posed, “Why haven’t your leaders created a strategic XRP reserve for Ripple?” His line of questioning suggests that a missing strategic reserve indicates either internal skepticism or unknown constraints preventing such a bold move.

This isn’t the first time Cardone has raised the issue. Just last month, he addressed the topic in a post questioning why Ripple wouldn’t implement an XRP reserve strategy if community speculation about prices reaching $8,000 per coin had credibility. His remarks came amid the fallout of Ethereum-focused company SharpLink Gaming, which experienced a sharp 73% after-hours drop in stock value. The incident prompted renewed interest in XRP as a possible treasury asset among crypto supporters.

Interestingly, Cardone’s challenge highlights a tension that has long existed among XRP enthusiasts and Ripple critics. On one hand, skeptics accuse Ripple of holding excessive control over XRP through its escrow accounts. On the other hand, they strangely expect the company to double down and institutionalize its faith in the digital asset by forming a reserve. This apparent contradiction hasn’t gone unnoticed.

Pro-XRP attorney Bill Morgan acknowledged the irony in these criticisms. In his view, Ripple attracting censure for simply holding large stores of XRP, while simultaneously being challenged for not holding more, reflects ideological inconsistency among critics. Morgan further noted that XRP continues to defy the narrow frameworks established by Bitcoin maximalists, contributing to its resilient position among the top cryptocurrencies by market capitalization.

Meanwhile, Ripple’s apparent hesitation hasn’t discouraged other corporate entities from seeing potential in XRP. A growing number of publicly traded firms have either revealed intentions to allocate capital into XRP reserves or begun the process. These include the likes of Trident Digital, a Nasdaq-listed company aiming to raise $500 million for its XRP treasury, as well as VivoPower and Webus International, both exploring similar reserve initiatives.

Related: XRP Price: $12M Max Pain for Bears

The overall conversation has brought to light fundamental questions about Ripple’s strategic direction in supporting XRP as a store of value. Whether the company will eventually follow in the footsteps of Bitcoin-treasury adopters remains uncertain. Yet the constant scrutiny from both advocates and detractors ensures Ripple’s financial decisions concerning XRP remain a focal point in the crypto space.