XRP Holders Misunderstand Token's Purpose, Analyst Claims

XRP, a popular cryptocurrency, has been misunderstood by many of its holders, according to an analyst. The token was designed to provide liquidity during times of severe stress, such as financial crises.

The analyst argues that XRP is not meant to be a speculative investment or a payment token, but rather a neutral settlement asset that operates beneath banks and other institutions.

This framing challenges the popular narrative that XRP can stay cheap because it is reused on demand. The analyst suggests that this assumption breaks down in real crises, when liquidity is hoarded and access is restricted.