John Deaton has clarified that XRP is not competing with Circle or USDC. His remarks correct widespread confusion about Ripple’s role, its RLUSD stablecoin, and the token’s function in the market.
XRP vs. Circle: Clearing Up the Confusion Behind Ripple’s Stablecoin Strategy
Using an X post, Pro-XRP advocate John Deaton has shut down new rumors suggesting XRP is in direct competition with Circle. The confusion started after Barstool’s Dave Portnoy sold his XRP based on advice that Circle would rival the token.
As CoinGape reported, Dave Portnoy admitted regret over the move, saying in a video, “I want to cry” after selling his stash at $2.40. XRP has just hit a new all-time high (ATH), which prompted Portnoy’s statement.
The crypto asset has outperformed Bitcoin, having surged nearly 23% in the last seven days. Deaton explained that XRP and Circle are not competitors. Ripple, the company behind RLUSD, operates in the same space as Circle.
But Ripple is not using XRP to enter the stablecoin market. It is doing so with RLUSD, a new stablecoin launched to challenge USDC directly. Deaton stressed that XRP is a token. It powers the XRP Ledger. Ripple is a fintech company. Circle is another fintech company.
Both build financial infrastructure, but their tools are different. The token is not meant to be a stablecoin. It does not aim to replace USDC or enter that category.
This clarification matters because confusing Ripple with XRP has real consequences. Deaton said such mistakes are common and lead to poor trading decisions. Ripple’s Managing Director, Reece Merrick, has also recently clarified this misconception about XRP, with people assuming it is the same thing as the crypto firm itself.
Ripple’s RLUSD Targets Stablecoin Market: Deaton Debunks Competition Myths
Furthermore, the legal advocate explained that Ripple’s launch of RLUSD aims to compete with established stablecoins, such as USDC. The token is not involved in that stablecoin’s role or design. It continues to act as a liquidity asset and bridge currency within the XRP ecosystem.
Deaton added that Ripple and Circle were once rumored to be exploring a business deal. That points to a potential past partnership rather than an ongoing rivalry. Hence, he urged the public to stop equating token performance with company competition.
Paul
Paul Adedoyin is a crypto journalist with 4+ years experience who provides timely news, in-depth research, and insightful content to inform and empower his audience. His works have been featured on sites such as CryptoMode, CryptoNewsFlash among others.
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Source: https://coingape.com/xrp-not-in-competition-with-circle-john-deaton-clarifies/