Ripple is unique in that the number one gripe it usually faces, is that it simply sells far too much of its cryptocurrency token, XRP. In any other industry, selling too much would not be cause for any concern, but rather a major point of celebration. However, the Chief Technology Officer (or CTO) of Ripple, David Schwartz, has defended the move and helped explain the legitimacy of the organization’s actions, while also going over Ripple XRP news.
Lawsuits Are Mounting – But Even Wins Are Not The Answer
Currently, the main bone of contention for Ripple is that they are adamantly attempting to show that they cannot be classed as financial security. This issue is made even more polarizing since XRP is a major cryptocurrency token within cryptocurrency exchanges. At the time of writing, the total market cap was just under 10 billion USD or rather just slightly over 1 billion Bitcoin (BTC). Therefore, the implications of XRP’s court case could be felt within the wider crypto community for years to come.
Key financial analysts are of the opinion that a favorable outcome in this court case might still not be the solution that Ripple is hoping for. As in all reality, the chances that XRP could be deemed a security are still fairly likely. Yet, the Ripple CTO and other staff are standing by their vehement conviction that Ripple has supplied a commodity to the marketplace and that all claims of a security are unfounded.
Accusations Of Illegal Activity Hurting Ripple’s Image
In the past Ripple has suffered as voices within the cryptocurrency community and within the greater financial community have postulated that they are, in fact, staging an ICO (or Initial Coin Offering). These serious points have been raised to the United States Securities Exchange Commission or SEC. Where it has been stated that Ripple used XRP sales to kickstart projects that brought in a major proportion of their total revenue. In addition, they also contend that Ripple has further gone on to continue selling XRP tokens so that they can supply an additional source of revenue.
Yet, Schwartz feels that these allegations are premature due to the fact that Ripple’s reasons for selling XRP tokens have evolved over time. In the beginning, the aim was to provide all parties with a plan to engage with the XRP ledger XRP tokens. But, as time moved on it became clear that XRP should be sold on the crypto markets. Furthermore, after some time it became clear that having more XRP tokens in circulation would only benefit the marketplace and users of the tokens alike.
The Verdict On Ripple XRP News
Now that you are clued up on Ripple XRP news, what are your thoughts on the XRP security debacle? Do you think the strategies are sound? Will you continue to buy XRP tokens?