Dayum! Ripple has just donated over $250,000,000 into their ex CTO’s new project and not everybody is happy about it! Stefan Thomas, Ripples ex CTO, had launched his new project in 2018 that was to be known as Coil. It is a platform designed to make it easier for creators to monetize their content across the internet. The project has recently announced that they have received a 1 BILLION XRP grant from Ripple’s XSpring. The money is stated to be used to drive adoption of XRP and the Interledger protocol (ILP).
They will be doing this through promoting the mainstream adoption of Web Monetization - which is an open web standard built on top of Interledger which enables the streaming of micropayments in any currency, including XRP. Coil will use the 1 billion XRP to build an ecosystem of creators, developers, companies, and non-profits that will all use XRP through Web Monetization.
Users who wish to support the content creators on Coil must pay a $5 monthly subscription to gain access. The creators can either be paid out in XRP or US Dollar.
Not Everybody Happy
It seems that not everybody is happy about this HUGE grant - largely due to the fact that there is not too much information about how the XRP is actually going to be spent. For example, users feel that if they use the XRP in promotions to “test” Coil - this will lead to a devaluation of XRP rather than helping it.
“Mixed feelings on this without more details TBH. If this is some sort of, “here’s 100 XRP to test Coil” then it would seem to devalue XRP further. - miguelmeloan”
It also seems that people are upset about the fact that this is such a HUGE grant which could have potentially been split amongst different projects.
“Same feelings, double edged sword, that 1B is coming from you, me and others here. Also what happened to sticking to one focus? - Ordinary_investor”
Furthermore, people actually believe that Ripple funding projects with XRP is actually bad for XRP investors unless the project actually has a big impact.
“Bad for the price of XRP short term. Long term unknown. Ripple funding their projects with XRP is bad for XRP investors unless coil starts to make some sort of impact soon, which probably wont happen - V-M-P”
It also is apparent that not everybody is pleased with the apparent business model being used by Coil. Some feel that the required subscription fee is one step too far which may hinder the growth of Coil.
“I won't lie, I'm skeptical on the whole coil business model. Or, at the very least, how they are selling it. I mean, I'm glad that they're out there using XRP, but with Patreon, it feels like a donation. Sure, there are patreon rewards, but those are cherries on top. I donate a lot, and it's always to help keep great creators that I personally really like, and choose, to keep creating - thekiyote”
Luckily, we don’t have to pay ANYTHING to use Publish0x and I am quite happy here - thanks though Coil!
It is clear that the community is very torn on this super large grant given to a “start-up”. However, we must remember that this is not just any startup. This is Ripples ex-CTO we are talking about here and it is very likely that they have a very STRONG working relationship so we can assume that they are communicating with each other regularly.
On the other hand, 1 BILLION XRP is no small fee to give away. This will certainly have some very dire consequences on the XRP ecosystem If Coil doesn’t take off as intended as it will be a waste of 1 billion XRP and will also cause an erosion of confidence toward the Ripple team.