XRP Does Not Make Ripple Richer Says CTO David Schwartz

Ripple CTO David Schwartz has publicly defended the company against further criticism from its associated cryptocurrency, XRP. The blockchain titan does not receive money from those who buy XRP tokens. Instead, Ripple is funded by VC Funding and angel investors.

30 December, 2019 | AtoZ Markets – In an ongoing debate on Twitter, Ripple CTO David Schwartz rejected the claim that the XRP was designed as a source of revenue for the company.

Ripple is Funded by VC Funding Says CTO David Schwartz

Schwartz explains that people buy ICO tokens to invest in the business that issues them. Ripple, on the other hand, could continue to develop its technology without XRP thanks to its venture capital funding. XRP was not used as a fundraising mechanism to get the network up and running.

Ripple has surpassed the $ 10 billion valuation after earning $ 200 million during its Series C funding round. It is now the second-largest crypto firm after mining company Bitmain.

The argument followed further in tweets, including Peter Todd, a former developer of Bitcoin Core. He claimed that Ripple’s partners told him they were not ready to use XRP. Schwartz protested:

“No one buys XRP to give Ripple money to do things.”

XRP investors felt the pinch in recent weeks. The token has fallen to its lowest level in over two years against the US dollar. Currently trading at around $ 0.19, the XRPUSD is now down almost 95% from its all-time high of $ 3.40.

In past spat, Schwartz and others have attempted to divide the company from the suggestions it had created and control XRP. Even though it has sold huge slices of tokens in the past two years.

Read More: Apple to Remove Coinbase Mobile Browser App from iOS Store

Ripple Controls 55% of XRP

Ripple, which controls 55% of all XRP tokens, unlocks 1 billion per month. Despite the fact that the company has taken a “more conservative approach” to XRP sales in the last quarter. It is not immediately known what it is doing with the more than $ 1.2 billion it has sold since the fourth quarter of 2016.

Brad Garlinghouse, CEO of Ripple, argued that these sales were necessary to develop RippleNet and the XRP-related businesses. In late November, Ripple also finalized its $ 50 million investment in MoneyGram, securing a 9.95% stake in the company. However, Todd says that XRP does not give investors a real right to anything.

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