- David Schwartz has shed light on the ongoing debate over XRP sales in a recent tweet.
- According to Schwartz, Ripple Labs’ purpose has been to distribute XRP and generate revenue to sustain its operations.
- Brad Garlinghouse has acknowledged the company’s reliance on XRP sales for survival.
In a recent tweet, Ripple’s Chief Technology Officer, David Schwartz, addressed the ongoing discourse surrounding the purpose and nature of XRP sales. Schwartz clarified that Ripple, headquartered in San Francisco, was established with the goal of distributing XRP as widely as possible and generating revenue from sales to sustain its operations if needed.
This discussion takes place against the backdrop of the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple, alleging that the company conducted unregistered sales of securities through XRP, which reportedly raised over $1.3 billion.
Sponsored
Ripple’s CEO, Brad Garlinghouse, has previously acknowledged that sales of XRP have been instrumental in keeping the company afloat, prompting questions about its reliance on these sales for revenue.
Ripple’s Dependence on XRP Sales
In an old interview, Garlinghouse admitted to the Financial Times that without selling the contentious token, Ripple would be hemorrhaging cash. Detractors argue that this dependency on XRP sales underscores the lack of a viable business model and casts doubt on the legitimacy of the cryptocurrency.
The ongoing debate on Twitter revolves around whether XRP was explicitly created for retail sales. The outcome of the SEC vs. Ripple lawsuit holds significant implications for the future of XRP and the wider cryptocurrency market.
The case is anticipated to be resolved in the first half of the year, with the final determination on the lawfulness of these sales and the potential consequences for Ripple and the broader cryptocurrency industry remaining uncertain.
On the Flipside
- Ripple has consistently maintained that XRP sales are essential for generating revenue to sustain its operations. This is not a new discovery.
- Ripple’s reliance on XRP sales for revenue raises questions about the sustainability and viability of its business model, as it may indicate a lack of diversified income streams beyond cryptocurrency sales.
- Despite the ongoing legal challenges with the SEC, Ripple has continued to forge partnerships and collaborations with financial institutions outside the United States.
Why You Should Care
The recent comments from David Schwartz and Brad Garlinghouse on the ongoing debate over XRP sales carry significant weight as they shed light on Ripple’s business model and reliance on XRP sales for revenue.
These comments have sparked discussions about the legitimacy of XRP and Ripple’s potential compliance with securities laws, particularly in light of the SEC’s lawsuit against Ripple.
FAQs
The top two accounts holding XRP belong to Ripple Labs, and these wallets collectively hold 3,725,321,087 XRP as of the most recent information available. The total value of XRP held in these accounts is estimated at $1,74 billion.
As a private company, Ripple does not publicly disclose its financial information, including profits. However, the estimated net worth of Ripple Labs Inc. is at least $65 million. Ripple Labs Inc. generates revenue by providing services and solutions related to its RippleNet network.
Buying XRP in the US can be challenging due to ongoing legal disputes. While XRP can still be purchased on international exchanges, some U.S. exchanges have delisted or temporarily halted XRP trading due to regulatory uncertainties and legal challenges surrounding XRP’s classification as a security or commodity.
According to quarterly market reports by Ripple, Ripple Labs had net sales totaling $1.2 billion of XRP in 2022. But to determine the total amount of XRP sold, every transaction since the inception of XRP would need to be recorded and calculated. The exact number of XRP coins sold may not be publicly available, as transactions on the Ripple network are recorded on a public ledger. Still, the identities of buyers and sellers are generally not disclosed.
To learn more about Gary Gensler’s testimony and the potential outcomes for the XRP market, read here:
Ripple Execs Await the Outcome of Gensler’s SEC Testimony
For an update on the SEC’s crypto crackdown and the recent criticism from GOP members, read here:
SEC Chair Gensler Urges Crypto Exchanges to Comply: Summary Rundown of Testimony
