Ripple CEO Garlinghouse Slams FUD Because 'It's Clear XRP Isn't a Security'

Investments in XRP has dwindled dramatically in 2019, indicating that not many are using the crypto-asset for its intended application: that of behaving as a bridge between fiat currencies for cross-border payments. The result is an underperforming token, now down more than 23 per cent against the US dollar.

Investors have their reasons to keep a safe distance from XRP. The token is now a part of a class-action lawsuit filed against Ripple, a San Francisco-based remittance firm, and its CEO Brad Garlinghouse. Thousands of investors have accused Ripple of selling them XRP as an unregistered securities offering. They seek refunds after suffering losses from their XRP investments. The XRP-to-dollar rate has plunged from $3 to about 25 cents.

xrp price, ripple
XRP price has dropped from $3 to now trade at 25 cents | Source: TradingView.com, BitStamp

The token launched on a promise to grease the wheel of the world’s cross-border remittance industry stands stuck. And Garlinghouse believes it is the victim of a mass FUD — a backronym of fear, uncertainty, and doubt.

Dumping or Inflation Control?

The chief executive tweeted today that “questionable sources” are spreading false narratives against XRP. He appeared to have been referring to reports that accused Ripple of dumping billions of dollars worth of XRP tokens. There is even a petition that is asking Ripple to discontinue its massive sell-off sessions. Over 2,400 XRP holders have signed it.

“Ripple continue dumping billions of XRP on us, crashing the price!”

it reads.

What bag holders call dumping is inflation control for Garlinghouse. He stated that they are selling XRPs to big institutions to increase its utility.

“XRP sales are about helping expand XRP’s utility – building RippleNet & supporting other biz building w/XRP ie Dharma & Forte. We DECREASED our sales by volume Q/Q and since then the inflation rate of XRP circulating supply has been lower than that of BTC and ETH.”

Garlinghouse added.

XRP is Not a Security

Meanwhile, Garlinghouse attempted to reiterate his stance on XRP’s classification as an asset. He stressed that the token remains a security asset, citing the UK Financial Conduct Authority (FCA) compared it to Ether earlier this month. The regulator had said:

“Tokens may have mixed features that may overlap or change over time. For example, Ether can be used as a means of ‘payment’ (exchange token) on the Ethereum platform, and can also be used to run applications (utility token). XRP has similar features.”

Nevertheless, the Securities and Exchange Commission is testing XRP based on the benchmark securities law SEC v. W. J. Howey Co (1946). The article states that an asset is deemed as securities if it involves “1) an investment of money (2) with an expectation of profits (3) in a common enterprise and (4) profits derived from the effort of others.”

Analysts believe XRP passes the Howey Test, which makes it a security token.

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews

Crypto Scams

Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
April 23, 2022
Prove
Joon Pak Head of Crypto at Prove talks to Us about Crypto Fraud And More
April 11, 2022
Mintable
Mintable CEO Zach Burks Talks to Us about the Opensea Stolen NFTs and Their Recovery
March 21, 2022
Crypto Crime
Crypto Crime Surges To Record Highs As Thieves Follow Market Buzz – Chainalysis 2022 Report
February 24, 2022
Bots Circumvent 2FA Login At Coinbase And Other Crypto Exchanges In 2022
Bots Have Circumvented 2FA Logins At Coinbase And Other Crypto Exchanges In 2022
February 17, 2022

Automated trading with HaasBot Crypto Trading Bots

Blockchain/Cryptocurrency Questions and Answers

Russia
Roundtable Interview-What is the Effect of The Russia-Ukraine War on Cryptocurrency Prices?
March 4, 2022
GamStop
How Does Bitcoin Casino Work + 2021 Beginner’s Guide
November 8, 2021
Cryptocurrency
How to Buy and Sell Cryptocurrency
November 8, 2021
What Are Bitcoin Futures And How Will They Work In 2022?
November 4, 2021
Ethereum
The Unconventional Guide to Ethereum
October 28, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin29,617 0.69 % 0.24 % 2.94 %
Ethereum1,887.1 1.40 % 3.35 % 1.47 %
Tether1.002 0.19 % 0.12 % 0.14 %
USD Coin0.9989 0.16 % 0.08 % 0.04 %
BNB314.95 0.57 % 3.19 % 9.26 %
XRP0.3989 1.03 % 1.03 % 1.86 %
Binance USD1.000 0.42 % 0.01 % 0.13 %
Cardano0.9566 0.22 % 0.68 % 6.96 %
Solana45.81 1.69 % 4.61 % 7.94 %
Dogecoin0.07997 0.37 % 4.37 % 4.78 %

bitcoin
Bitcoin (BTC) $ 29,446.00
ethereum
Ethereum (ETH) $ 1,868.98
tether
Tether (USDT) $ 1.00
usd-coin
USD Coin (USDC) $ 1.00
bnb
BNB (BNB) $ 313.38
xrp
XRP (XRP) $ 0.395979
binance-usd
Binance USD (BUSD) $ 1.00
cardano
Cardano (ADA) $ 0.494487
solana
Solana (SOL) $ 45.33
dogecoin
Dogecoin (DOGE) $ 0.079714