June 19, 2024

CTO Ripple: We sell XRP for negligible amounts

Ripple's CTO, David Schwartz, said that the company is not selling XRP tokens to attract investment.He emphasized that the proceeds from the sale of XRP are negligible compared to other sources of funding.

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On December 20, The Block analyst Larry Chermak wrote:

"If Ripple ever starts working as a payment company, it will bringbenefit to shareholders, and a heavy wallet for XRP holders. XRP is a revenue mechanism for Ripple and nothing more."

He indicated that the company sold XRP for $ 260.million in the last four months alone, despite attracting $ 200 million in venture financing. For all the time, the startup sold tokens already at $ 1.2 billion.

The topic on Twitter was picked up, and former Bitcoin Core developer Peter Todd said:

"There is no need for XRP, like almost all ICO coins, to exist.The purpose of XRP is to make money for Ripple by selling to simpletons."

Todd recalled that Ripple explains regulardigital coin sales by the need to maintain the ecosystem of their products. According to him, the company's customers have confirmed their interest in Ripple technologies, but none of them intend to use XRP.

This contradicts the startup's claim that the cross-border ODL payment system, in which XRP is an intermediate currency, is being used"Two dozen" clients of the company.

Users in the comments agreed that the motivation of token buyers is the same as the motivation of investors in securities.

"No one is buying XRP to give Ripple development money.We started selling XRP after the market price was established, and for negligible amounts compared to other financing."David Schwartz replied.

Investors have repeatedly accused Ripple ofviolation of securities laws during the sale of XRP. In August, the latest lawsuit against the company was supplemented with new arguments, but representatives of Ripple petitioned for its rejection.