An article titled “Hostile takeover effort emerges for a popular cryptocurrency” surfaced on Twitter which mentioned that a company called “Valor” is trying to take over “XRP”. This article faced a lot of heat as Ripple’s CEO Brad Garlinghouse and the CTO, David Schwartz came in to fend off these FUDs.
The original article mentions how the company Valor which was started in 2017 by Vishal Harpalani plans to take over XRP by creating a “fork” or “clone” of XRP. The article mentions that Valor would do this by raising “tens of millions” of dollars to short XRP.
After XRP gets devalued Valor would then give out one Valor token for every XRP the users hold. The article goes on to state:
“Valor would then redistribute extra Valor to its community and incentivize holders to exchange even more of their now-devalued XRP. Basically, force a capital flight.”
The article also stated that Harpalani is working on a Hostile takeover of a top-10 cryptocurrency, but that he declined to discuss XRP or Ripple.
Dan Primack’s article faced a lot of heat and criticism by the XRP community as well as Ripple’s CEO and CTO. David Schwartz commented:
“This is amusing. A hostile takeover of the XRP Ledger is not technically possible nor does this plan make economic sense.”
Brad Garlinghouse retweeted David Schwartz’s tweet, saying:
“[email protected] wants to sell some snake oil… any buyers out there!? Media have a responsibility to help the industry understand what’s hype vs. substance, not to propagate blatant attempts at market manipulation. When will media coverage of this industry mature?”
Schwartz and Garlinghouse disagree completely with the idea “if a hostile takeover could be done on XRP”.
Dr. T also stepped in further substantiating the above mentioned. He tweeted:
“It’s not possible to do a “hostile” takeover of XRP Ledger because unlike bitcoin where whoever controls majority mining or Proof of Stake where whoever owns majority coins, CONTROL the network, in XRP you have to individually CONVINCE majority users to switch. There’s choice.”
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