Ripples CTO gives reasons for the strong XRP sales

Ripple’s CTO gives his reasons why the company has such strong XRP sales. For him it is also very clear that XRP is not a security.

Ripple CTO explains the situation regarding XRP

Ripple has long struggled with not seeing XRP as a security. This fight could be the key to XRP’s future. The bottom line is that Ripple is seen as the issuer and seller of a coin.

XRP has one of the largest market capitalizations on the crypto market, which is also shown by the third place ranking on Coinmarketcap.com. The market capitalization is around $ 10.3 billion and the price per token is $ 0.235. Investors determine whether XRP is considered a security or not.

Still, analysts believe that even if Ripple wins, that won’t be the end of all the problems.

Ripple’s CTO, David Schwartz, is convinced that Ripple’s strongest lawyers will take care of this legal matter.

The company Ripple has been accused of operating an illegal ICO. On August 5, 2019, some investors filed a complaint against Ripple with the SEC. The report reportedly provides clear evidence that Ripple used the XRP token to generate large amounts of revenue. It also states that the company is now selling its tokens to create the need for additional earnings.

Schwartz has his own opinion on the sale. He explained that different strategies were used at different times. Originally, the idea was only to pass XRP on to all people and companies who wanted to work with the XRP ledger. However, it made no sense to continue this approach, as soon as XRP had reached a market price.

The further strategy required that XRP be sold to the market to have more tokens in circulation. However, selling large quantities of XRP quickly led to a drop in prices that made XRP expensive for people and therefore no longer very useful for payments. Therefore it was decided not to sell all tokens at once.

On January 15, Ripple Labs filed an application claiming that XRP was not a security.

Heath Tarbert, chairman of the United States Commodity Futures Trading Commission (CFTC), expressed his thoughts that XRP is a security or commodity.

“It is unclear. You should stay tuned, I think. Part of the problem is that we share our responsibilities with the SEC. If it is a security, it is your responsibility. If it’s a commodity, it’s ours. ”

For Ripple CEO Brad Garlinghouse, it is also clear that XRP is neither a commodity nor a security, nor does he believe that strong XRP sales will not affect the price.

Image source: Pixabay

–