Earlier today, New Jersey-based BlockFi announced to the community that it would be “limiting platform activity.” In a recent letter that was shared on Twitter, BlockFi noted it was “shocked and dismayed” by the collapse of FTX and Alameda. Citing the lack of clarity on the situation, BlockFi told that it was not able to operate business as usual.
At the time of Three Arrows Capital’s collapse mid-year, FTX acquired the financially troubled BlockFi. Back then, FTX appeared as a saving grace for BlockFi. However now, it looks like the downfall of the exchange might prove to be fatal to others associated with it like BlockFi.
Read More: BlockFi pauses withdrawals amidst FTX collapse
With a company as big and noteworthy as FTX now on the verge of collapse, several question marks with respect to the sustainability of other companies and projects are being raised. Opining on the same, Ripple’s CTO David Schwartz recently said on Twitter,
“To be fair though, you call pretty much everything a fraud and a Ponzi scam. And we almost never find out that, surprise, something was actually legitimate. We just don’t find out it’s a scam/fraud. So you really can’t lose.“
Are there odds of Ripple collapsing?
A particular user opined that sooner or later Ripple could end up treading on the same path as FTX, BlockFi. In fact, the person also went on to outrightly question Schwartz if he was concerned about the same.
The Ripple CTO did not rule out the possibility of “bad things” happening to Ripple. He went on to acknowledge that it’s a company, after all. However, he opined that it was hard for him to “imagine” scenarios where bad things could happen to XRP.
To another question on the chances of Ripple being bought or acquired by a massive tech company like Apple, Microsoft, etc., Schwartz said,
“I don’t think it’s particularly likely. It’s hard for me to see how it would fit. The elephant in the room is what would happen to Ripple’s XRP. Would they want it? Or not? And if not, what happens to it?“
However, he also played the role of the devil’s advocate by keeping the doors open and chalking out a possible scenario. He said:
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