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  • Due to the underperformance of XRP, investors are trying to distance themselves from the token.
  • “XRP sales are about helping expand XRP’s utility – building RippleNet,” Garlinghouse.

The cryptocurrency market has suffered a blow in the last couple of months. Altcoins, in particular, have been dwindling in performance against Bitcoin. Ripple’s XRP has suffered the most among the top three cryptocurrencies.

Due to the underperformance of XRP, investors are trying to distance themselves from the token. Ripple plunged from an all-time high of $3 to the current market value of $0.26. Moreover, a class-action lawsuit against the firm is ongoing with investors seeking refunds for being sold unregistered security tokens.

The CEO of Ripple, Garlinghouse has today vehemently responded to what he terms “questionable sources.” The sources are likely linked to a petition that seeks to stop Ripple’s routine sales of XRP to institutional investors. At the moment about 2,400 XRP holders have  given the petition a go-ahead. The petition says that “Ripple continue dumping billions of XRP on us, crashing the price!”

However, Garlinghouse rubbished the dumping claims saying the sales are tailored towards the expansion XRP’s 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.”

At the same time, the CEO reiterated the XRP is not a security token. In fact, the UK regulator gave XRP a greenlight this month placing it at per with Ether.

“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.”