Komal Joshi · Oct 19, 2020 . 6min read
Ripple Senior VP Posts Network Statistics in an Attempt to Save Face After Being Called Out
Ripple's On-Demand Liquidity (ODL) product using XRP as a bridge currency accounts for nearly a fifth of all transactions on RippleNet.
By Victor Ugochukwu · Aug 18, 2020 . 5min read
In a recent tweet, Asheesh Birla, Ripple’s Senior VP of Product dishes out figures detailing transaction volume a core statistics on Ripple network. However, this is happening just days after the cryptocurrency company was called by a Financial Times publication accusing of shifting goalposts in an attempt to save face for not living up to its lofty promises.
Birla posted that Ripple’s On-Demand Liquidity (ODL) product using XRP as a bridge currency accounts for nearly a fifth of all transactions on RippleNet.
It’s obvious the chart for ODL is pointing upwards and amounts for 20% and increasing, but it doesn’t a more crucial question: What’s the percentage of value for ODL Vs Ripplenet?
As a quick rebuttal, Brad Garlinghouse, Ripple’s CEO countered FT’s publication. Also, critics like Nathaniel Popper of the New York Times were not spared in Brad’s Twitter response. In his tweet, Brad said:
“ODL (product that uses XRP) has accounted for more than $2 billion in txns since its launch”Brad Garlinghouse
He went further by stating how much ODL has grown to compare last year to 2020
“ODL volume grew 11x YoY comparing H1’19 v. H1’20”
Again, Ripple Network CEO bragged with further statistics that since the ODL launch, it had processed over 2 billion transactions amounting to a notional value of $7 billion and counting.
Evidently, Ripple has big names such as MoneyGram, goLance, Viamericas, FlashFX, Azimo under its belt. These are companies employing Ripple’s ODL and a few other Ripple product.
Ripple’s ODL adoption does not necessarily translate to gains for these big companies
Without doubt, payment giants like MoneyGram have adopted Ripple technology for cross-border remittance. But Moneygram’s filings show that Ripple handed it $31m in “market development fees”. Ripple claims this was to encourage the use of XRP in the first half of this year. Upon critical look, this “handout” accounts for 60 per cent of Moneygram’s operating profit.
While it is targeting to become the Amazon of crypto, it doesn’t have the network user base of Amazon. Perhaps the kind of growth scale and adoption expected by its investors may not be possible. Maybe that is why some of Ripple’s early investors are willing to dump their equity at a discount.