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Is Ripple profiting from selling XRP?

Forbes has criticized Ripple’s business model and adoption, claiming that it is more focused on selling XRP than buying it.

Forbes question Build and grow Ripple, a crypto company known for flaunting its payment infrastructure and growing customer base.

Martin Walker, director of banking and financial services at the Center for Evidence-Based Management, told Forbes:

Ripple continues to make huge efforts to promote the story of optimizing cross-border remittances and payments but whenever information of reality comes out, it is all about selling XRP.”

Ripple selling XRP through Tranglo?

The author of the article, John Hiatt, used the Malaysian payment company Tranglo as an example to prove his story. Tranglo is one of the largest customers using Ripple’s On-Demand Liquidity (ODL) product.

Through ODL, Ripple provides XRP to its customers to facilitate instant cross-border transactions. Customers can pay their XRP to Ripple with cash.

The news site claims that Ripple is indirectly using ODL to dump the currency on the open market.

Very profitable business

Tranglo is a major client of Ripple, but the latter has a 40% ownership stake in the former. Also, according to filings by the Malaysian company, only 8% of its customers choose to settle payments using XRP.

In addition to, Global Electronic Money Alliancea Hong Kong-based financial services-related company, is responsible for 73% of Tranglo’s XRP-related revenue.

Interestingly, Global E-Money Alliance Chairman Alex Kong is a board member at Tranglo. This raises the question of whether Ripple is using ODL to empty its bag of XRP.

Former Ripple employees told the news site that the company “probably isn’t” making money in the software space. But, it is “extremely profitable” in terms of selling XRP.

Ripple was created to distribute XRP: CTO

Finally, Ripple’s Chief Technology Officer (CTO) David Schwartz explainedAt least in my view, Ripple was built to distribute XRP as widely as possible and, fortunately, if necessary, be able to generate enough revenue from sales (or things like sales) of XRP to sustain its operations.

However, the community’s CTO asked, “What do you feel will be more valuable to Ripple: selling its services to institutions, or selling XRP purely and generally?”

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Disclaimer

Adhering to the Trust Project’s guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently check the facts and consult with a professional before making any decisions based on this content.

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