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Ripple XRP News

Brad Garlinghouse: Ripple wouldn’t be profitable without selling XRP

In an interview with the Financial Times, the CEO of Ripple Brad Garlinghouse had clarified: “We would not be profitable or cash flow positive [without selling XRP], I think I’ve said that. We have now”.

In a recent report, we found that Ripple had paid MoneyGram over $11 million after their strategic partnership announcement which they had counted as revenue. Moneygram explained that they are “compensated by Ripple for developing and bringing liquidity to foreign exchange markets, facilitated by Ripple’s blockchain, and providing a reliable level of foreign exchange trading activity”.

Part of Ripple’s strategy seems to be selling XRP at a discount to institutional clients to incentivize them to use the new technology. These systematic XRP sales have figured on almost all quarterly reports by the company and have been necessary for the survival of the ambitious startup. Ultimately big plans require big funds in the world of capitalism, especially when trying to shake a multi-billion dollar industry.

Recently, Ripple secured $200 million in a series C funding round led by Tetragon which led it to have a record year. Additionally, the company is looking to launch an IPO this year. By going public they will raise further funds which will give them the opportunity to expand further than they already have. This progress “may” allow Ripple to hold off XRP sales at a discount which may positively affect the price.

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