Garlinghouse Intends to Clear up Concerns on XRP Token

To kick off the afternoon, let’s talk about Ripple’s XRP. the token is down 20 percent on the year, losing a lot of weight, $3 billion to be exact. 

Along with XRP, Stellar has been falling against the US dollar this year with many enthusiasts pointing out the two main things that could have triggered this lack of performance:

• The sale of XRP by Ripple itself and its founders to fund the firm.
• The likeness that the US Securities and Exchange Commission (SEC) will call the project as a security.

The head of Ripple, Brad Garlinghouse recently came out to shut down the rumours and postulation, aiming to clear “FUD about XRP and Ripple”.

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

Garlinghouse asserted that the SEC’s latest guidance on digital assets, which some reports and analysts say would pertain to the whole XRP debate, isn’t “law, rule, or regulation”. He went onto add that governments, like the one in the UK, have claimed that XRP is not, in fact, a security. So it would make sense that the cryptocurrency is unlikely to be classified as anything but a non-security by the SEC.

The Ripple chief went onto discuss the concerns around the XRP sales, which some cynics have stated is a way for Ripple to print money for its own benefit. Garlinghouse says that this is far from the case though. 

“XRP sales are about helping expand its utility – building RippleNet & supporting other biz building w/XRP ie Dharma & Forte.”

It will be interesting to see how this situation plays out with XRP being classed as a security. For more news on this and other crypto updates, keep it with CryptoDaily!