Ripple, a remittance network built on blockchain technology has sparked debate since its partnership with the Moneygram to use as a payment system. Recently in an interview, the founder of this Fintech company admitted that huge selling of XRP token has immensely helped in the collection of revenues and still it is an important source of revenue to sustain this company.
In an interview with the Financial Times, the CEO Ripple Brad Garlinghouse expressed concern about the financial situation as well as the sources of revenue, however, he did not give a clear answer about the role of the sale of XRP tokens in operations of Ripple. The post stated:
“When pressed on Ripple’s profitability, Mr. Garlinghouse noted that Ripple, the company, was cash flow positive. How much of that cash flow was coming from service provision as opposed to sales of pre-existing XRP stock was less clear”
It’s a partnership with a leading payment provider Moneygram raised further hope for the XRP. A director of banking and finance at the industry organization center for Evidence-Based Management, Martin Walker emphasized the adoption of XRP after co-owning the remittance company Moneygram. It will attract more users globally and hence increase in the sale of XRP tokens.
Ripple Labs Inc. was initially founded back in 2012, however, the stable release took place in 2018. It was developed as a payment protocol for a real-time gross settlement system. It utilizes the blockchain technology to ensure real-time settlement. This was one of the first blockchain-based company that addressed the timing issue while transaction. Since, its inception and listing of its official token XRP, the trader speculated its real-world use and its co-relation with the fluctuation with the price of XRP tokens and it is being sold on a massive scale expecting the bright future of this company. Furthermore, despite based on distributed ledger technology, the company is owned and controlled by a single entity. And it has raised suspicion for use of XRP as a revenue medium for the operations.