Ripple CEO Brad Garlinghouse revealed that the sale of XRP forms a significant chunk of the company’s profitability. Ripple has been in the past regularly accused of dumping of XRP to make profits, which in result stopped XRP’s value from growing.
XRP sale amounts for a significant chunk of Ripple’s profit.
In an interview with the Financial Times, Brad Garlinghouse admitted that a significant chunk of profit for Ripple comes from the sale of XRP. Ripple has been criticized for dumping off XRP in the past. But Ripple’s sale of XRP declined by 80% in the last quarter of 2019. When asked about the XRP sale, Brad Garlinghouse replied, XRP is one source, and if you took away software revenues that would make Ripple less profitable, and if you took away all our XRP, that would make Ripple less profitable as well.
Ripple’s agreement with MoneyGram to expire in 2023
The blockchain payment firm entered in a strategic partnership with the American money transfer company MoneyGram. Ripple paid MoneyGram to use its technology for cross-border payments. Recently, MoneyGram disclosed that it received $11.3 million from the blockchain payment firm during Q3 and Q4 of 2019. Ripple’s agreement will expire on 1st July 2023. MoneyGram noted that they expect Ripple partnership will help them reduce working capital needs and generate additional earnings and cash flows.