CEO Brad Garlinghouse Says Ripple is Just One Player in a Broader XRP Ecosystem
Brad Garlinghouse, the CEO of Ripple sat down for a conversation with SVP of Marketing Monica Long.
Many controversial and pressing questions were asked and answered. One , was on the issue of whether XRP is a security or not.
Garlinghouse stated: “I think its very clear XRP is not a security… I think is if Ripple the company shut down, XRP trades on a hundred other exchanges around the world and XRP would continue to trade. Yeah, Ripple is one important participant in the XRP ecosystem but there are a whole bunch of participants.”
Ripple is a technology company that provides the most efficient solutions for sending money globally while XRP is an independent digital asset. The XRP Ledger is the open source blockchain technology behind it.
Ripple uses XRP and the XRP Ledger in its product, xRapid. It does not control the digital asset or technolog, although they own 60billion XRP. The XRP Ledger cannot be owned by a single entity, it exists independent of any one person or busines, that includes Ripple.
The U.S. Securities and Exchange Commission (SEC) did not provide information on whether XRP is a security or not. However, the SEC has been going behind other ICOs that were accused of selling unregistered securities. One of the things that are taken into account is the possibility to decentralize Ripple and the XRP network in order for it not to be considered a security.
James Park, in a report for the Lowell Milken Insitute, explained:
“For a utility token to be distributed freely without regulation by the securities laws, it must be functional. But many utility tokens are only functional if they are distributed widely enough so that a de-centralized system arises.”
In the recent months, aptly named “crypto-winter”, XRP was a ray of sunshine. It overtook Ethereum to become the second biggest player in the crypto ecosystem and also integrated their product with numerous well-established banks.
When the market turns bullish, the price of XRP will most likely shoot up because of their widespread usage.
Even though Garlinghouse failed to state clearly the price he expects for Bitcoin because of price manipulation practices and so on, he is generally optimistic about 2019. As cryptos move towards mass adoption, the CEO wants to see an increased transparency in the projects.