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Ripple CEO compares company’s XRP ownership to Saudi Arabia’s oil

Anirudh VK



Ripple CEO compares company's XRP ownership to Saudi Arabia's oil
Source: Unsplash

Ripple’s CEO, Brad Garlinghouse said that he believes that Ripple’s XRP token is not a security at the CB Insights Future of FinTech conference. He also offered three arguments to his case.

The first argument presented by Brad involves the XRP Ledger. He made it very clear that if Ripple shut down tomorrow, the XRP Ledger would continue to operate. He said:

“Its open-source, decentralized technology that exists independent of Ripple.”

His second argument was that XRP did not fall under the technical definition of a security. He said:

“If you buy XRP, you are not buying shares of Ripple. We are a private company, we have investors…XRP does not give you access to dividends or profits that come from Ripple.”

He then stated that XRP is being used as a utility by Ripple to solve the problem of providing fast and secure cross-border payments. Securities by definition are not utilities and are used as a claim to the profits made by the company in return for the company having permission to use those funds.

It is a well-known fact that Ripple owns 60% of all XRP tokens. When asked about this, Brad said:

“I don’t think that our ownership of XRP gives us control, because it is an open-source decentralized technology. Saudi Arabia owns a lot of oil, but it doesn’t give them control of oil.”

Coinbase has still not added XRP as a tradeable currency, and this question was brought up by the interviewer. Garlinghouse stated that exchanges around the world make decisions that are best for them. He went on to say:

“I can’t speak for Coinbase…but I think it’s in Coinbase’s interest. Ultimately Coinbase will decide what it’ll decide.”

He emphasized that the consumer-speculator is not Ripple’s target market and that their target market is financial institutions. He further added that these financial institutions can solve a big problem measured in trillions of dollars using Ripple’s technologies such as xRapid and XRP.

On the crypto market, he said:

“The crypto markets have been different, where pragmatism isn’t ruling the day. You have these holy wars [where] its more about ideologies. “

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Anirudh VK is a full-time journalist at AMBCrypto. He has a passion for writing and interest towards the future of blockchain technology and cryptocurrencies. He does not own any cryptocurrencies currently.

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    June 23, 2018 at 12:25 AM

    lets be honest, if saudia arabia had pumped up all the oil and would deposit them in tanks, (which is more suitable comparison to ripple ownership on xrp, cuz ripple created them (=pumping up oil) and put them into escrow acc (=depositing in tanks)), they would own the oil and you can be assured, that any single drop which is being sold, would bring them money..

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Ripple’s XRP records relatively low 24-hour trading volume even as prices hold above $0.35

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Ripple's XRP records low 24-hour trading volume; even as coin trumps in third position
Source: Pixabay

The cryptocurrency market has been exhibiting a bullish trend even as Ripple’s XRP steered its way to major declines last week. The digital coin was hovering below $0.40, with very low price action in 2019. XRP was ranked as the third largest crypto-asset with a market cap of $16.03 billion and a price of $0.38, at press time.

However, XRP’s trading volume of $1.28 billion over the past 24-hours painted a different picture. The coin was trading relatively low in terms of its volume.

Ripple’s partnerships and developments did not seem to have had a significant effect on its native cryptocurrency’s trading volume.

The silver crypto, Litecoin [LTC], which is the fifth largest by market cap, recorded a 24-hour trading volume of $4.27 billion, which is nearly four times that of XRP. EOS, the sixth positioned digital asset, stood at a trading volume of $2.04 billion over the past 24-hours.

If the 24-hour trading volume was taken into account, XRP slipped to the seventh position, followed closely by Tron. TRX was closing in with a 24-hour trading volume $858 million.

According to the CoinMarketCap figures, XRP’s trading volume gained momentum on May 14, 2019, registering a massive $5.83 billion in 24-hour trading volume, priced at $0.32, as compared to $1.97 billion the previous day. However, the digital coin endured huge losses over the month as the volume sank soon after. XRP, however, has maintained its price above $0.35.

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