Lately, there’s been some misconceptions about Ripple and the XRP Ledger native token, XRP. The most recent illusion is that the San Francisco-based crypto solutions company and cross-border payment firm was created to sell XRP to retail. However, Ripple Chief Technology Officer (CTO) David Schwartz gave a prompt response to clear the air.
“XRP was created to sell to retail. Full stop.” This was a statement a certain Twitter user named ‘Scams are Bad’ wrote on Wednesday, quoting a 2021 tweet from a widely followed personality Tiffany Hayden with the same wording — “XRP was created to sell to retail. Full stop.”
In responding to this tweet, another user named Azrael countered, submitting that it is Ripple that was created to sell XRP to retail. The user added that the departure of former Ripple CTO Jed McCaleb from the Silicon Valley tech company after dumping billions of XRP was due to the disagreement regarding XRP being sold to retail by Ripple.
Azrael wrote, “IMO, Ripple was created to sell XRP to retail. I am not sure if you and Tiffany are saying this in combat of the phrase “XRP was never for retail”. But there was an obvious disagreement regarding XRP being sold to retail, the way it was. So Jed left.”
To support his assertion, Azrael quoted another comment dropped by Hayden in November 2021. According to Hayden, former Ripple CTO Jed McCaleb said in testimony that “Ripple’s entire business plan was to sell XRP.”
IMO, Ripple was created to sell XRP to retail. I am not sure if you and Tiffany are saying this in combat of the phrase "XRP was never for retail". But there was an obvious disagreement regarding XRP being sold to retail, the way it was. So Jed left.https://t.co/CG6fGdYvC3
— Azrael – DG – PwntNub (@pwntnub) April 19, 2023
David Schwartz Reacts
Schwartz, who previously agreed that 98% of Ripple’s revenue comes from XRP sales, replied accordingly. According to him, Ripple was created to distribute XRP as broadly as possible, affirming that the company’s frequent XRP offloading is to sustain its operations.
The Ripple CTO wrote, “At least in my view, Ripple was created to distribute XRP as broadly as possible and, with luck and if necessary, be able to generate enough revenue from sales (or things like sales) of XRP to sustain its operations.”
At least in my view, Ripple was created to distribute XRP as broadly as possible and, with luck and if necessary, be able to generate enough revenue from sales (or things like sales) of XRP to sustain its operations.
— David "JoelKatz" Schwartz (@JoelKatz) April 19, 2023
Aside from sustaining company operations, Schawart stated in a previous discussion that Ripple’s best option is to sell off XRP in its possession as that would help remove the claims that XRP is not decentralized.
Recall that 80% of XRP’s total supply was gifted to Ripple in 2012. As of April 2023, the company which has been in a court battle with the SEC for over two years regarding the classification of XRP still holds about 42B XRP tokens in different escrow accounts.
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