- Ripple does not need your fund – David Schwartz
- What is the essence of XRP?
XRP News Today – David Schwartz, Ripple’s CTO claims that his company never managed an ICO, as opposed to what several critics have to say. Of recent, there is a continuing debate on Twitter about if Ripple administered an initial coin offering (ICO) by selling XRP tokens or not. This practice was initiated by the former Bitcoin core developer Peter Todd.
According to Schwartz, the blockchain giant does not receive any money from those who purchase XRP tokens. Instead, it gets funded by venture entrepreneurs and angel investors. According to @JoelKatz on Twitter, he claims that: “Nobody buys XRP to give Ripple money to do things. We were vc/angel funded and were going to build regardless. We started selling XRP only after there was a market price and for negligible amounts compared to our other funding.”
Replying to @JoelKatz and four others, @Amiblocked1 stated: “David that is the exact argument XRP holders make for Ripple selling XRP.
It’s argued that Ripple use that money to develop the XRP ecosystem adding value to the coin and hoping price follows that value. Do u instead just pocket all that money? #XRPCommunity #xrparmy.”
What is the essence of XRP?
Schwartz states that people purchase ICO tokens to invest in the company that disseminates them. While Ripple, on the other hand, would be to carry on the development of its tech without XRP with the support of its VC funding. XRP was not used as a fundraising tools to get the network functioning.
Commenting on this, @JoelKatz stated: “Even if that’s true now, it certainly wasn’t true years ago.”
Replying to @JoelKatz and 4 others, @Amiblocked1 stated: “Spend 5 minutes looking around the retail XRP INVESTORS, its clear the perception is that Ripple sells XRP which goes to building the XRP ecosystem. They expect Ripple to add value to XRP hoping price follows that value, without Ripple they wouldn’t INVEST in XRP.”
On a monthly basis, Ripple, which controls 55% of all XR tokens, unlocks 1 billion XRP token from its escrow wallet. Although the company has embraced “a more conservative approach” to XRP sales in the latest quarter, it is still ambiguous as to what Ripple is doing with over $1.2 billion it has sold since Q4 2016.
The CEO of Ripple, Brad Garlinghouse claimed that these sales were required for the growth of RippleNet and XRP-related businesses. Sometime in November, Ripple concluded its $50 million investment in MoneyGram, hence securing a 9.95% stake in the company. Though, like other critics, Todd explains that XRP does not give investors a real right to anything.