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Ripple’s Chief Technology Officer (CTO), David Schwartz, has expressed his concerns regarding the potential harm caused by airdrops in the cryptocurrency space. According to Schwartz, instead of implementing reward systems that focus on issuing new tokens, it would be more beneficial to concentrate on appreciating existing tokens.
In an effort to promote financial inclusion and expand access to financial services, the Federal Deposit Insurance Corporation (FDIC) had previously suggested distributing Ripple’s XRP token among banks. However, Ripple’s CTO disagreed with this approach, believing that airdrops could cause more harm than good.
Schwartz emphasized that it would be better for users if they didn’t have to deal with the tax implications of airdrops and instead focused on appreciating existing tokens. This method would allow users to maintain their long-term interests without being burdened by the immediate tax issues associated with airdrops.
As a result, Ripple has decided not to support airdrops for its XRP token, opting for more innovative ways to promote financial inclusion rather than resorting to this strategy.
Ripple’s Chief Technology Officer has consistently expressed his concerns regarding the potential harm caused by airdrops in the cryptocurrency space.
Source: u.today
