A fresh wave of controversy has emerged in the cryptocurrency industry, centering around long-standing tensions between Ripple and Stellar. According to recent discussions on social media, Stellar appeared to take a swipe at Ripple, reigniting debates about the history between the two blockchain projects.
The official Stellar X account posted, “Imagine spending more on lawyers than developers and calling it progress.” Many interpreted this as directly criticizing Ripple’s ongoing legal battles, fueling reactions across the crypto community.
Some defended Stellar’s statement as a general industry observation, while others saw it as an attempt to undermine Ripple’s standing.
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McCaleb’s History With Ripple Draws Scrutiny
According to Panks Mekras, co-founder of Anodos Finance and a notable figure in the crypto space, Jed McCaleb, the founder of Stellar, has a history of alleged disruptive actions against Ripple.
Mekras pointed out that McCaleb, who was instrumental in creating the XRP Ledger (XRPL) and co-founding Ripple, attempted to destabilize XRP’s value after his departure. “Jed played dirty and tried to crash XRP,” Mekras stated, emphasizing why he remains skeptical of Stellar.
His comments gained traction within the XRP community, reinforcing distrust toward McCaleb. However, supporters of McCaleb argue that his departure from Ripple was driven by strategic differences, particularly regarding decentralization and inclusivity in financial systems.
They highlight that Stellar has developed into a platform prioritizing cross-border payments and financial accessibility, setting itself apart from Ripple.
Allegations of Market Manipulation and Ripple’s Counteractions
One of the more contentious aspects of McCaleb’s split from Ripple revolves around allegations that he attempted to crash XRP’s value. Ripple’s Chief Technology Officer David Schwartz affirmed that Jed McCaleb tried to sell his XRP holdings quickly, which would have caused a major price decrease for the token.
Ripple used legal means to protect the platform by restricting McCaleb from selling big batches of XRP at once. The measures imposed by Ripple forced him to sell his assets in small amounts throughout the period ending in 2022.
Conversely, some argue that McCaleb’s actions were legally sound and within his rights as an investor. Opponents of Ripple’s actions argue the imposed restrictions exceeded reason while disputing McCaleb’s selling activities’ impact on XRP’s future market standing.
Stellar vs. Ripple: A Competitive Landscape
These ongoing disputes have led to growing skepticism among some investors regarding Stellar and McCaleb’s intentions. Many XRP supporters argue that Stellar is merely an inferior replication of XRP and lacks true innovation. Some have even opted to divest from XLM in favor of XRP, citing concerns over McCaleb’s past conduct.
However, Stellar’s advocates counter that the network has demonstrated significant growth, particularly through strategic partnerships with financial institutions and blockchain-based payment providers. They assert that Stellar’s technology has evolved independently and offers unique advantages in the crypto ecosystem.
Claims of Ripple’s Investment in Stronghold
An X user, @LiveFre47518057, claimed that Ripple invested $100 million into Stronghold, a financial services platform operating on Stellar’s network. The user suggested that Stronghold provides interoperability between XRP, XLM, and other cryptocurrencies, implying that Ripple has confidence in Stellar’s ecosystem.
However, according to Mekras, there is no direct evidence of Ripple investing in Stronghold, despite claims suggesting otherwise. This statement has further fueled debate over the extent of Ripple’s indirect involvement in Stellar-based projects.
As competition between Ripple and Stellar intensifies, the broader crypto community remains divided. While some view Stellar as a valuable alternative to XRP, others continue to express caution due to McCaleb’s past controversies.
With both blockchain networks expanding their ecosystems, the ongoing debate over their legitimacy and long-term prospects shows no signs of slowing down.
Also Read: Ripple Expands to Portugal with Unicâmbio Partnership for Faster Cross-Border Payments
