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XRP – the cryptocurrency that is closely associated with the FinTech company Ripple – has faced a significant amount of bearish volatility as of late, which many analysts believe has been caused by Ripple selling a large amount of tokens onto the markets each quarter.
Brad Garlinghouse, the CEO and founder of Ripple, is now trying to set the record straight when it comes to the controversy surrounding XRP and is shooting back at critics who claim that it is a security.
Ripple CEO Claims It Is Clear That XRP is Not a Security
One oft-cited critique of XRP is that it is likely to be designated as a securities product due to its close ties to Ripple.
Although the debate surrounding this topic is quite heated and has split the crypto community, Garlinghouse explained in a tweet that it is “clear” that XRP is not a security, signaling that he is confident that Ripple will win the class action lawsuit they are currently facing from investors who claim that the cryptocurrency is a security token.
“As a defendant in the class action lawsuit, I won’t get into the details (response from Ripple is coming soon). I will say: SEC guidance isn’t issued by the Commission and isn’t law, rule or regulation. It’s clear XRP is not a security and the UK and others have said as much,” he explained.
1/ As a defendant in the class action lawsuit, I won't get into the details (response from Ripple is coming soon). I will say: SEC guidance isn't issued by the Commission and isn't law, rule or regulation. It's clear XRP is not a security and the UK and others have said as much.
— Brad Garlinghouse (@bgarlinghouse) August 27, 2019
Garlinghouse: Quarterly XRP Sales Done in Attempt to Expand XRP Utility
In addition to the class action lawsuit that Ripple is currently engaged in, the company is also facing controversy surrounding news that they have been selling a large amount of tokens onto the markets due to using inflated volume data.
News of this led many investors and analysts to claim that Ripple has been the force behind XRP’s lackluster price action over the past several months, but Garlinghouse explained that the sale of the crypto has been done with a goal of expanding its utility.
“XRP sales are about helping expand XRP’s utility – building RippleNet & supporting other biz building w/XRP ie Dharma & Forte. Reality is we DECREASED our sales by volume Q/Q and since then the inflation rate of XRP circulating supply has been lower than that of BTC and ETH,” he said.
2/ XRP sales are about helping expand XRP's utility – building RippleNet & supporting other biz building w/XRP ie Dharma & Forte. Reality is we DECREASED our sales by volume Q/Q and since then the inflation rate of XRP circulating supply has been lower than that of BTC and ETH.
— Brad Garlinghouse (@bgarlinghouse) August 27, 2019
Assuming that Ripple’s quarterly sales of the crypto continues to decline on a quarterly basis and that the company resolves the lawsuits it is currently engaged in, it is highly probable that XRP will be able to incur some upwards momentum – assuming the aggregated crypto market incurs stable growth.
Featured image from Shutterstock.
