Messari Research Piles On The Pain For XRP Community, Alleging That Ripple is A ‘Tax Shelter’
- Messari Unqualified Opinions published an article that states that Ripple has not been making charitable donations to any other companies.
- Elliptic recently published an article that connected XRP and Ripple to $400 million in illicit activity.
In the Messari Unqualified Opinions blog, it seems that Ripple and XRP may not be having a good week. Released shortly after an article by Elliptic suggested a connection between $400 million in illicit activity and XRP, the article compared the activity to that of Bitcoin, which is tied to $829 million.
The author of this article suggests that XRP is being used as “a corporate and executive tax shelter,” adding that they aren’t providing grants to charities and that the circulating supply of XRP may be “locked in long-term restricted selling agreements.”
The public Form 990 for the foundation for the fiscal 2018 year shows that there was $0 granted to other charities by the Ripple Foundation for Financial Innovation. Messari points out that the CEO was provided with his $665,000 salary, and that millions were invested in XRP Capital, controlled by Michael Arrington.
Messari’s concern, as he describes, is due to dissatisfaction that other charities not having donations from the Ripple Foundation. Still, the donations to the Foundation last year are legal non-cash donations, and the team at Ripple is well associated with the laws surrounding their financial activity.
Unfortunately, considering the controversy surrounding Ripple’s assumed centralization and issues with their treasury, Messari takes a sarcastic and frustrated tone through the article. Messari states that the network is “’shadier’ than bitcoin, despite what Ripple execs might have regulators believe.”
The article doesn’t even shy away from other implied allegations, sarcastically commenting, “I’m not suggesting Brad Garlinghouse is personally laundering $400 million himself. Of course not. That would be silly and probably wrong.” Continuing, it adds that the actions of the company are potentially “worse,” accusing the platform of “using that vehicle as a corporate and executive tax shelter.”
Elliptic recently announced that they will be launching a transaction monitoring system, the first of its kind, to follow XRP, as the platform seems to hold over 85% of the crypto asset’s supply.
The Ripple community is fairly strong, and they frequently rise up against any platform or even individual that speaks against them. Messari decided to take on this so-called “army,” recently alleging that the Ripple Foundation is only investing in their own charity to get the tax write-offs that it would provide.