Did Ripple lie about its XRP-powered liquidity platform?

Rick Steves

Dealing with rumors is a difficult challenge for PR teams, but denying rumors that are true creates a challenge for the long term.

In mid-September 2021, it was reported that Ripple Labs was looking to build a market making platform.

A person with knowledge of the matter allegedly told Coindesk that Ripple was recruiting as many as ten people, including a crypto trader with experience with arbitrage between different exchanges and a marketing executive tasked with building relationships with liquidity providers and exchanges.

Ripple was also found to be recruiting an institutional markets analyst. The job posting mentioned Ripple’s “vision of an internet of value requires digital asset efficiency and a healthy crypto market, and robust liquidity is a core component of making that vision a reality.”

A Ripple spokesperson denied the report that the firm had plans for a market-making platform.

Enter Ripple Liquidity Hub

Nearly two months later, the blockchain specialist and creator of XRP announced the upcoming launch of Ripple Liquidity Hub.

The platform will initially support BTC, ETH, LTC, ETC, BCH, and XRP. In the future, Ripple plans to add functionality such as staking and yield generating functionalities.

According to the announcement, the technology is the same that has been supporting Ripple’s On-Demand Liquidity (ODL) product for nearly two years, but will be made available as a customer-facing product.

This means Ripple will be providing aggregated access to cryptocurrency market makers, exchanges, and OTC desks to enterprises, with the first announced partner for the alpha version being Coinme: a licensed bitcoin ATM company in the United States, with thousands of locations across the country.

The turnkey solution for financial institutions is expected to help accelerate the shift to crypto will leverage smart order routing to source digital assets at optimized prices from market makers, exchanges, and OTC desks.

Enterprises can use Ripple Liquidity Hub to provide their end customers with the ability to buy, sell and hold digital assets at the best possible prices across a range of venues.

The firm also wants to solve specific pain points of enterprise customers such as avoiding long and resource-heavy integrations through a streamlined API, and eliminating pre-funding requirements in order to free up working capital.

Denying rumors that are true can backfire

The definition of market making platform and liquidity hub may not always coincide, but it seems that Ripple simply chose to deny the rumor back in September to avoid scrutiny over a project that is still in a very early stage.

Denying rumors that are mostly true, however, may backfire. Especially for companies within the digital asset ecosystem, a space that faces extreme volatility on a daily basis.

The market making platform rumor was denied and forgotten. Then, Ripple announced its liquidity hub and all is fine. The problem is that the next rumor will be taken more seriously precisely because this last one was true and denied.

This only shows the importance of a solid communications team and how it can affect a company in the long term. “No comment” is usually the best approach to this kind of rumor. We hope Ripple has learned its lesson.

    Read this next


    Nubank makes impressive turnaround, posting $1 billion profit in 2023

    Brazil’s Nubank has made a remarkable turnaround, swinging from a net loss in 2022 to a $1 billion net profit in 2023. The digital bank’s revenues have soared past $8 billion, marking a major milestone in its financial performance.

    Retail FX

    Spanish watchdog warns of UP MARKETS, BITBINX

    The Comision Nacional del Mercado de Valores (CNMV), the financial regulatory body of Spain, announced in a statement that it has added to its warning list new website that are illegally offering financial services to Spanish citizens.

    Digital Assets

    MicroStrategy buys 3,000 more bitcoins, suffers phishing attack

    MicroStrategy, the largest corporate investor in bitcoin, has expanded its cryptocurrency portfolio by buying an additional 3,000 bitcoins for $155 million.

    Crypto Insider

    Saudi Launches World’s First Cultural Metaverse

    The Saudi Ministry of Culture, droppGroup, and Oracle have joined forces to launch the Cultural Universe, the world’s first government-operated national Metaverse initiative.

    Retail FX

    eToro revives IPO plans after failed $10B SPAC merger

    Israeli social trading network eToro is actively exploring options for a public market listing, according to CEO Yoni Assia in an exclusive interview with CNBC.

    Digital Assets

    Meme Coin Communities Gear Up for the CoinMarketCap Crypto Awards

    CoinMarketCap’s Crypto Awards 2024, the first edition of a new annual event, is captivating the global crypto community. This is especially true for the Meme Coin Of The Year category, where voting has become a battleground for the most passionate and vibrant communities in the crypto space.

    Digital Assets

    Sui Recognized as 2024 Blockchain Solution of the Year at AIBC Eurasia Awards

    The Layer-1 Received the Top Honor at the Eurasia Awards While Experiencing a Period of Unprecedented Growth and Recognition

    Crypto Insider

    Vitalik Buterin, Sandeep Nailwal Lead Decentralized AGI Summit, Address Centralized AI Risks at ETHDenver

    Sentient and Symbolic Capital’s Decentralized AGI Summit will feature leading Decentralized AI authorities like Vitalik Buterin and Sandeep Nailwal.

    Digital Assets

    Aethir Unveils Its First Decentralized AI Node Sale

    Aethir, a leader in decentralized GPU cloud infrastructure, has announced its highly anticipated Node Sale.