Brad Garlinghouse, the CEO of Ripple, the cross-border payments and remittance-focused distributed ledger technology (DLT) project in charge of XRP (XRP), has stated categorically that the firm will continue to sell large chunks of the altcoin, as dumping the altcoin on the market from time to time helps Ripple to remain profitable, according to reports on March 2, 2020.
XRP Sales Part of Ripple’s Profitability Strategy
Brad Garlinghouse, the CEO of highly controversial blockchain project, Ripple has made it clear that despite people’s complaints concerning the constant selling of large amounts of XRP tokens by the company, Ripple will not desist from dumping its XRP holding on the market as the firm will become less profitable if it tries to do so.
In his words:
“We would not be profitable or cash flow positive without selling our XRP holdings. We XRP is one source. I don’t know how to answer that because if you took away our software revenue, we’ll become less profitable. If you took away all our XRP, that makes us less profitable. So I don’t think about it as one thing.”
Notably, the 49-years-old CEO that Ripple also uses its XRP holdings to incentivize companies that integrate its blockchain solutions into their processes, thereby accelerating the adoption of XRP and its technology.
As reported by BTCManager, Ripple completed a $50 million equity investment in payments giant, MoneyGram earlier in November 2019. And last week, reports emerged that Ripple pumped in a massive $11 million worth of XRP into the firm in Q3 and Q4 of 2019.
Garlinghouse’ Comments Triggers Mixed Reactions
Interestingly, Garlinghouse’s comments have triggered several mixed reactions on crypto Twitter, with some in support of Ripple’s XRP sales while others have condemned the move.
Luke Martin, a popular crypto trader and market analyst tweeted:
“@bgarlinhouse clarified: “we would not be profitable or cash flow positive [without selling XRP], I think I’ve said that. We have now. Dumping $XRP on you is how Ripple stays alive.”
Twitter users @CredibleCrypto tweeted:
In support of Ripple’s XRP dumping, @Crypto_Puppy_ tweeted:
“Ripple sold around 500m USD of XRP in the last years, 500m was invested in programs of XPRING for improving adoption (Forte, MGI, Coil, Cinnamon, etc…). I just guess you’re biased and use your twitter to share your ignorance…“
While Ripple’s technologies continue to gain traction in the global financial ecosystem, its native altcoin, XRP is still struggling to survive, a situation that has brought many hodlers of the coin a significant level of frustration.
Whether XRP will ever hit the moon, remains to be seen.