- 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.
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.
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
Sourced from dailycoin.com.
Written by on 2023-04-20 14:00:00.
