Key Points:
- Former Ripple Director calls XRP bank proposal a scam.
- The price of XRP is determined by the market, not by artificially setting a price.
- Be cautious of proposals promising high returns at low risk.
In a recent development, the former Director of Developer Relations at XRP, Matt Hamilton, has raised concerns about a proposed concept of creating an XRP bank, put forward by Jimmy Vallee.
This idea involves investors depositing their XRP tokens into the bank and using them to buy gold. According to Vallee, if all Ripple holders agreed that the price of one token was $10,000, and they deposited their tokens in the bank, the organization would become one of the wealthiest.
However, Hamilton has expressed skepticism about this concept, calling it a scam. He argues that the market determines the price of Ripple, and artificially setting a price would not be possible. Crypto Eri, a prominent member of the Ripple community, shares Hamilton’s view, stating that she does not want to play a game with her assets.
It is not the first time that Hamilton has challenged Vallee’s claims. He has previously stated that neither a buyback of XRP nor linking the token to gold directly is possible. David Schwartz, the current CTO at Ripple and one of the architects of XRP Ledger, holds a similar view. Schwartz has explicitly called such offers a scam, warning investors not to trust anyone who promises high returns at low risk.
In light of these concerns, it is essential for investors to be cautious when considering proposals such as the XRP bank concept. While the idea of creating a wealthy organization through collective agreement may seem tempting, it is important to remember that such proposals may not be backed by sound principles. Investors should always do their due diligence and seek professional advice before making any investment decisions.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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