- Critics say Ripple’s $40B value relies on XRP; Aljarrah calls this a misunderstanding.
- VCs fund Ripple partly for XRP exposure, letting it expand without selling tokens.
- Ripple grew fast with six acquisitions in two years and launched its USD-backed RLUSD stablecoin.
Discussions about Ripple’s new $500 million funding continue to intensify in the XRP community as critics claim the company is not worth $40 billion. Versan Aljarrah, founder of Black Swan Capitalist, said critics who claim Ripple’s value comes only from its XRP holdings don’t understand how the company actually works.
Specifically, Aljarrah argued that claiming Ripple has no value beyond XRP shows a fundamental misunderstanding of its architecture. Ripple’s infrastructure, liquidity hubs, and strategic partnerships serve as a bridge between traditional finance and blockchain rails.
XRP functions as the settlement layer, not the core product. One cannot exist meaningfully without the other.
VCs Claim Ripple’s Value Comes Mainly From XRP — and Little Else
Notably, the controversy started after reports that several venture capitalists think Ripple’s valuation is too high and is mostly based on its XRP holdings. One investor said Ripple is “worth nothing without XRP,” while another stated that its equity alone can’t explain its $40 billion valuation.
Some investors suggested firms may have joined the funding to get indirect exposure to XRP at a discount, rather than because they believed in Ripple’s products.
A former Ripple employee noted that the funding enables Ripple to acquire other companies without selling XRP, maintains market confidence, and supports the $40 billion valuation seen in secondary markets like Carta.
Arrington: Critics Are Ignoring Ripple’s Real-World Traction
TechCrunch founder and Arrington Capital CEO Michael Arrington has also pushed back against these claims, describing the anti-Ripple perspective as “stunning amounts of cognitive dissonance.”
He pointed out that critics often argue that Ripple’s value rests solely on XRP, while simultaneously claiming that XRP itself is worthless. To him, this contradiction overlooks Ripple’s expanding institutional presence and the strategic role XRP plays within its broader ecosystem.
Ripple’s Expansion Undermines the Skepticism
Indeed, the dispute comes at a moment when Ripple is executing its largest expansion in company history. Over the last two years, the company has completed six acquisitions, including GTreasury, Metaco, Hidden Road, Palisade, and Rail, and launched its own USD-backed stablecoin, RLUSD.
Sources close to the strategic investors — Pantera Capital, Brevan Howard, Galaxy Digital, Fortress Investment Group, and Marshall Wace — say these firms already maintain deep business relationships with Ripple and are positioning themselves for a regulated, stablecoin-driven financial system shaped by the new GENIUS Act.
According to a source, even if Ripple’s product roadmap faces obstacles, its treasury allows it to “buy another company” and continue expanding.
Related: Ripple Wants Payments And Stablecoins To Lead XRP, Not an IPO Listing
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