Ripple CEO Brad Garlinghouse claimed that over-the-counter XRP token sales have been key to ensuring the company is operating at a profit.
As quoted in a report by the Financial Times, Garlinghouse said: “We would not be profitable or cash flow positive without selling our XRP holdings.
“Well XRP is one source. I don’t know how to answer that because if you took away our software revenue, we’ll become less profitable. If you took away all our XRP, that makes us less profitable. So I don’t think about it as one thing.”
Ripple has come under intense scrutiny over its token sales during the past two years, with a group of investors filing a lawsuit against the company over the alleged effect it has on the price of XRP.
But Garlinghouse has adamantly defended the company on numerous occasions, labelling the accusations as “questionable sources spreading FUD (fear, uncertainty and doubt)”.
Last August he took to Twitter to publicly defend the Ripple foundation.
I'm always struck by the questionable sources (i'm being generous here) spreading FUD about #XRP and @Ripple. Even more so over the last few weeks (Ripple's XRP sales, litigation etc)…. thus, I feel compelled to comment
— Brad Garlinghouse (@bgarlinghouse) August 27, 2019
“I’m always struck by the questionable sources (I’m being generous here) spreading FUD about Ripple,” he wrote.
Compelled
“Even more so over the last few weeks (Ripple’s XRP sales, litigation, etc), thus, I feel compelled to comment.
“As a defendant in the class action lawsuit, I won’t get into the details (response from Ripple is coming soon). I will say: SEC guidance isn’t issued by the Commission and isn’t law, rule, or regulation. It’s clear XRP is not a security and the UK and others have said as much.
“XRP sales are about helping expand XRP’s utility – building RippleNet and supporting other businesses building w/XRP such as Dharma and Forte. Reality is we DECREASED our sales by volume Q/Q and since then the inflation rate of XRP’s circulating supply has been lower than that of BTC and ETH.
“Ripple continues to set industry standards in reporting and transparency (one example is our quarterly markets report). We lay it all out, and it’s not our ‘view’ but fact.”
The price of Ripple has been incredibly volatile since reaching an all-time high of $3.32 in January 2018, falling to as low as $0.183 before bouncing to where it is trading today at $0.238.
For more news, guides and cryptocurrency analysis, click here.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.