thecryptobasic.com
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Zach Rynes claims holding $XRP mainly funds Ripple’s growth rather than directly benefiting token holders.
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He argues equity investors in Ripple gain profits through buybacks and dividends, while $XRP holders lack such rights.
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The criticism follows Ripple’s $750M share buyback and a 200M $XRP transfer days before the announcement.
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Rynes contrasted this with Chainlink, saying incentives in the cosystem focus on the $LINK token.
A top $XRP critic has argued that owning $XRP effectively funds the corporate ambitions of Ripple Labs rather than directly benefiting token holders.
The criticism came from Zach Rynes, community liaison at Chainlink. In a post on X, Rynes outlined what he described as a structural conflict between token holders and equity shareholders in projects where both exist.
Key Points
Token Holders vs Equity Investors
According to Rynes, when a company sells both tokens and equity, it creates two stakeholder groups whose economic interests may not always align. Equity investors typically have legally enforceable rights to profits, while token holders often do not.
As a result, when a company generates revenue, the value may ultimately flow to equity holders through mechanisms such as dividends or share buybacks rather than directly benefiting token investors.
Rynes argued that this dynamic applies to Ripple’s relationship with $XRP. He noted the company has spent years selling $XRP to the market while using the proceeds to fund corporate activities. These include acquisitions and stock buybacks that primarily benefit Ripple shareholders.
In the latest episode, Ripple is orchestrating a $750 million share buyback, elevating its valuation to $50 billion. Interestingly, just days before the announcement, Ripple moved 200 million $XRP (about $280.8 million) to another wallet.
The transfer happened after the company unlocked 1 billion $XRP from escrow on March 1 and re-locked 700 million $XRP two days later.
Notably, in 2025, Ripple bought the prime brokerage platform Hidden Road for $1.25 billion and the treasury management firm GTreasury for $1 billion.
Claims About $XRP Economic Role
Rynes also argued that holding $XRP does not necessarily give investors full exposure to the ecosystem Ripple is developing. According to him, the company’s equity, rather than the token, represents direct ownership in the firm’s growth.
He further pointed to past court filings in which Ripple stated that the bridge currency use case of $XRP is demand neutral. This claim indicates the token’s utility does not necessarily translate into price appreciation.
Chainlink Comparison
The Chainlink representative contrasted this structure with the design of the Chainlink ecosystem, where incentives center around the $LINK token rather than company equity.
He also highlighted what he described as Chainlink’s strong position in decentralized finance infrastructure, noting collaborations with major institutions including SWIFT, DTCC, Euroclear, UBS, and JPMorgan Chase.
The remarks add to the ongoing rivalry between supporters of the $XRP ecosystem and Chainlink advocates.
While Rynes framed $XRP as a token that primarily benefits Ripple’s corporate strategy, supporters of $XRP maintain that the token’s role in cross-border payments and liquidity provisioning remains central to its long-term value proposition.