Following rumors floating through the crypto grapevine about the controversial dumping of XRP, CEO of Ripple – Brad Garlinghouse – has finally decided to address the issues. Taking to his official Twitter, Garlinghouse made a few clarifications about this, as well as other issues regarding the SEC and whether or not XRP should be officially regarded as a security.
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
The CEO has tweeted with the aim of nipping in the bud, the amount of FUD being spread about XRP and Ripple in general. Garlinghouse believes that there shouldn’t be much of a conversation surrounding XRP’s security status.
Without going into too many details regarding the ongoing class-action lawsuit which his status as defendant forbids, Garlinghouse maintains that XRP should not be classified as a security.
“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.”
Ripple’s Aggressive XRP Sales
Over the last few months, Ripple has been offloading large amounts of XRP for various reasons. Many now believe that this move is largely responsible for XRP being the odd one out when compared with fellow coins which have had a commendable 2019 so far.
A few days ago, it was reported that so far, XRP has lost at least $3 billion of its market cap and Kyle Samani, co-founder of Multicoin Capital believes that the company itself is to blame for its woes, because of the dumps. In Q2 alone, Ripple dumped more than $250 million worth of XRP.
However, Garlinghouse explains the reason for the ‘dump’. According to him, the aggressive sales are a deliberate method by the company to support XRP adoption through Ripple’s several services.
“XRP sales are about helping expand XRP’s utility – building RippleNet & supporting other biz building w/XRP ie Dharma & Forte.”
Garlinghouse then ended is short Twitter exposé by suggesting that the FUD being floated around is unnecessary because Ripple has always been transparent with all of its dealings, as can be confirmed in its quarterly reports.