Flare Networks Co-Founder Discloses His Expectation Regarding XRP Post-Legal Resolution Trajectory

The co-founder of Flare Networks, Hugo Philion, says he anticipated a massive XRP sell-off following the ruling of Ripple's lawsuit. He also commented on XRP's use cases and potential challenges in the future.

Also, Philion claimed that regulatory challenges impeded Ripple's moves to advance its native token's utility.

Philion Anticipates Massive XRP Dump

In a recent tweet, Philion stated his thoughts on his expected XRP trajectory.

I have always assumed that XRP would sell off hard after the case ended. This is because the primary (but not only) usecase for XRP is (and has always been) cross border transactions and the primary force behind developing this market is still Ripple. Since late 2020, Ripple have...

- Hugo Philion (@HugoPhilion) August 5, 2023

The co-founder wrote: I have always assumed that XRP would sell off hard after the case ended."

In support of his assumption, Philion dug into Ripple's cross-border transactions using its native token, XRP. The co-founder argued that such transactions are the only primary use case for XRP.

Further, he stated that the blockchain company has been the major driver and support of the process for XRP. Philion said that Ripple's activities formed the primary market developer for Ripple and its trajectory performance over the years.

However, Philion mentioned that Ripple has been under regulatory crackdown since 2020, citing its legal battle with the US Securities and Exchange Commission (SEC).

According to Philion, the ongoing lawsuit affected Ripple's capacity to maintain an effective cross-border payments market for its token, XRP.

Also, Philion argued that Ripple still battles significant setbacks despite its acclaimed regulatory clarity through its win against the SEC. He noted that the blockchain company needs to catch up in its developmental endeavors.

Flare Networks co-founder stated that several stablecoin providers have emerged in the industry as alternatives. Amid the increasing pressure within the crypto market, Philion noted that Ripple's competitors have planted a stronghold.

Before now, Ripple said that its operations and progress were not affected by the long-lasted lawsuit.

However, Philion thinks the blockchain firm should fortify its cross-border payments, especially within traditional finance systems. He noted traditional finance now has an increased skeptical disposition toward the crypto space following the implosion of the FTX exchange triggered by Sam Bankman-Fried (SBF).

XRP Community Leashes Counter Attacks

Following Philion's remarks, several members of the Ripple (XRP) community reacted in defense of their favorite crypto. Many disagreed with Philion's views on XRP's use case.

A prominent Ripple community member, Panos Mekras, argued about the claim of XRP's key use case centered on cross-border transactions. He maintained that Ripple initially focused on decentralized finance (DeFi) and decentralized exchanges (DEXs), with other remarkable use cases of XRP within its ecosystem.

Another XRP fan, @DXRON XRP/XLM, slammed Philion for his remarks about XRP when his Flare Networks project failed. He stated: Writing all this when FLR is the biggest disappointment in all of crypto is crazy."

Similarly, Ripple community member Kieran Kelly questioned Philion's agenda through his disclosed assumption on XRP and Ripple's operations in building its cross-border payments.

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