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Ripple Labs: Are XRP Sales Keeping Ripple Afloat?

 
Ripple Labs: Are XRP Sales Keeping Ripple Afloat?
Breaking News / Ripple
  • There is an escrow of XRP tokens held by ripple labs in which it is allowed to sell a billion tokens on a monthly basis. 
  • Such a monthly sale has been a constant source of criticism from the community despite the company is not selling all of the XRP released.

There is an escrow of XRP tokens held by ripple labs in which it is allowed to sell a billion tokens on a monthly basis. Such a monthly sale has been a constant source of criticism from the community (mainly in the sense of centralisation/decentralisation) despite the fact that the company is not selling all of the XRP released.

The CEO of the company, Brad Garlinghouse has said that the continuous selling of the XRP tokens is to be able to contribute to the companies profits in the long run.

The Financial Times recently released a new article with the CEO who said during an interview in August last year that the company has been registering profits. When he was questioned on whether the XRP sales are the main reason for such profits, he said the following:

“Well XRP is one source. I don’t know how to answer that because if you took away our software revenues, that would make us less profitable. If you took away all our XRP, that makes us less profitable. So I don’t think about it as one thing.... we would not be profitable or cash flow positive [without selling XRP], I think I’ve said that. We have now.”

It’s interesting to look at his answer as it seems as if he’s not wanting to give away too much to the interviewer. One popular critical analyst, Luke Martin commented on the article with Garlinghouse and said that the only reason the company continuously dumps tokens or investors is to stay afloat.

We will write more on this later today so for more news on this (and other crypto updates), keep it with CryptoDaily!

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