Ripple Official Compares XRP Coin Akin to Chevron’s Relationship to Oil
Ripple’s relationship with its native token offering, the ‘XRP’, has been the subject of a lot of controversy since the currency’s very inception. While the Ripple Foundation maintains that it is completely independent of XRP, the fact that the foundation still owns 2/3rd of the tokens’ total supply is a fact that many people find disconcerting.
As per a new tweet by Cory Johnson, Ripple’s Chief Strategist, the firm’s equation with XRP is similar to “energy giant Chevron’s relationship to oil”.
Ripple’s relationship to XRP is akin Chevron’s relationship to oil. We have a lot of it, we believe it’s a superior technology and we support its many uses — for billions of reasons. But we don’t have all of it, we don’t control it and we aren’t it.
— Cory Johnson (@CoryTV) October 4, 2018
The analogy presented by Johnson is quite vague, especially since Chevron does not create any oil, but rather uses various means of procuring resources to facilitate oil extraction operations. Not only that, in order for oil to obtain any value, the crude extract has to first be processed via a host of different methods— all of whom are quite expensive.
Now with this information in mind, comparing a pre-mined cryptocurrency that has instant value (due to the speculative nature of the crypto market) with a natural asset such as oil is quite strange to say the least.
Lastly, with investors and enthusiasts still not fully behind XRP as an independent asset, it would be highly desirable if the the Ripple Foundation came forth and clarified its relationship status with its native financial offering.