The programmatic sales of XRP are part of Ripple’s funding program. In the crypto community, however, the program has come under criticism. Some users claim that the XRP sales increase the pressure on the price and impact it negatively. Analyst Luke Martin reacted to Garlinghouse’s statements by saying that Ripple is dumping XRP at the cost of XRP users. In response, another Ripple community member Galgitron said:Speaking of Ripple’s sales, do you know that Ripple has practically stopped selling for months now?This is confirmed by the last quarterly report and from Jeb McCaleb, co-founder of Ripple. According to these the volume of XRP sold is too low to significantly affect XRP price. Although McCaleb has also been pointed out for putting pressure on the XRP.
CEO has talked about the programmatic sales of the XRP token. According to Brad Garlinghouse, the company remains profitable by selling the token. (Without selling XRP) we would not be profitable or cash flow positive. 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.
Ripple’s CEO also made a controversial revelation. According to Garlinghouse the company “incentives” its clients to use Ripple’s products. The incentives are XRP payments that the company makes to its clients, depending on the priority they have:The Company is compensated by Ripple in XRP for developing and bringing liquidity to foreign exchange markets, facilitated by the ODL [Ripple’s On-Demand Liquidity] platform, and providing a reliable level of foreign exchange trading activity. We refer to this compensation as market development fees.
Author : Reynaldo