Despite Criticism, Ripple CEO Brad Garlinghouse Promises to Eventually Scale Back XRP Sales

In a recent interview with Bloomberg's Sonali Basak, Garlinghouse addressed the continuous criticism Ripple faces regarding its large XRP holdings and sales practices.

In a recent interview with Bloomberg, Garlinghouse discussed the constant criticism that Ripple has faced regarding its large XRP holdings and sales.

Some critics have argued that Ripple is either holding onto too much XRP or selling an excessive amount into the market, which they believe could exert downward pressure on the token’s price.

“There’s always criticism,” Garlinghouse said. “If we hold too much, we get criticized. If we sell some, we still get criticized.”

He described this ongoing scrutiny as a frustrating balancing act but hinted that Ripple might eventually reduce its XRP sales.

“We’re hopeful that over time, as we build out different products and solutions, we might be able to sell less of XRP,” Garlinghouse said.

The executive also touched upon XRP’s unique supply dynamics, describing it as a “slightly deflationary” asset.

Initially, XRP’s supply began with 100 billion tokens, but it has since decreased to around 99.9 billion due to coin burns and network activity.

Compared to other cryptocurrencies like Bitcoin, where lost private keys result in a reduction of the circulating supply, XRP’s deflationary characteristic is linked to the token’s use in payment channel activity.

As more payments are processed on Ripple’s network, a small portion of XRP is used up, leading to a gradual decrease in the total supply over time.

This deflationary property might help to mitigate concerns over oversupply, especially considering that Ripple still holds about 42% of the total XRP supply.

However, the company’s large XRP holdings have been a subject of criticism, with some arguing that it grants Ripple too much control over the token’s economic destiny.

To put this into perspective, if Ripple were to sell a significant portion of its XRP holdings, it could potentially influence the token’s price and have implications for other XRP investors.

Despite this, Garlinghouse highlighted that XRP’s deflationary nature, in contrast to other cryptocurrencies, could be a valuable asset in positioning XRP as a long-term utility token rather than just a speculative asset.

Moreover, the conversation included updates on Ripple’s legal battle with the U.S. Securities and Exchange Commission (SEC), which began in December 2020.

Recently, the SEC made the decision to drop its appeal against a New York court ruling largely in favor of Ripple.

This development follows a period of uncertainty and legal disputes, during which the SEC initially lost its case against Ripple and was planning to appeal the decision.

However, the SEC ultimately decided against proceeding with the appeal, a move that could have further delayed the resolution of the case and caused more difficulties for Ripple.

The SEC’s decision not to proceed with the appeal is a significant victory for Ripple, allowing the company to move forward with less immediate threat from the regulator.

This development also provides Ripple with the opportunity to shift its focus from defense to offense.

Previously, Garlinghouse had expressed frustration with the SEC’s persistent criticism of Ripple, even after losing the case.

Now, as the SEC has chosen not to pursue the case further, Garlinghouse feels that the company is finally on the offensive.

“It’s a different feeling when you’re on the offense rather than playing defense,” he said.

Although the SEC has pulled back from the case, it’s worth noting that Ripple is still planning to pursue its own cross-appeal against a small part of the court ruling.

Despite this ongoing legal challenge, Garlinghouse appeared optimistic about Ripple’s future direction, especially with regulatory clarity slowly emerging.

As the company navigates the final stages of the SEC case and prepares for the next chapter, Garlinghouse hinted at the possibility of reducing Ripple’s XRP sales.

This move could be made to ease market concerns and demonstrate long-term confidence in the token’s value.

With the SEC case winding down and Ripple’s position strengthening, the company might adopt a more aggressive growth strategy, shifting from defense to offense.

For XRP holders and the broader crypto market, a cutback in sales might boost investor confidence and ease fears of excess token dumping. However, whether Ripple follows through on this plan remains to be seen.

As Ripple regains control of its narrative, Garlinghouse’s comments mark a turning point — signaling that the company is ready to make bold moves to protect XRP’s value and cement its role in the evolving crypto landscape.