Ripple CEO Brad Garlinghouse said the company would not be profitable without selling XRP tokens, despite the sentiment of investors.
According to a report by the Financial Times on Friday, Ripple’s CEO explained that sales of XRP account for a significant chunk of the company’s profitability.
He was quoted as saying,
We would not be profitable or cash flow positive [without selling XRP].
He added,
Well XRP is one source. I don't know how to answer that because if you took away our software revenues, that would make us less profitable. If you took away all our XRP, that makes us less profitable. So I don't think about it as one thing.
Garlinghouse also revealed Ripple incentivizes partners depending upon the “shape and size and type and how high a priority they are.” Last week it was reported that MoneyGram had received $11.3 million in benefits from Ripple in 2019.
XRP investors have been critical of Ripple’s regular selling of XRP, which increases the circulating supply and selling pressure, effectively impacting prices. In August 2019, more than 2,000 XRP investors signed a petition asking Ripple to stop the sale of XRP and accused the company of flooding the market with coins.
Analyst Luke Martin responded to Garlinghouse’s statement by claiming that Ripple was “dumping” XRP in order to stay afloat.
Here is a fun quote from the CEO of Ripple:@bgarlinghouse 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. https://t.co/H2KwsANDVo
— Luke Martin (@VentureCoinist) March 1, 2020
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