Cryptocurrencies are a major talking point these days. You do any research about making money online or talk to any investor and there is more than a good chance that cryptocurrency will come up, in particular, Ripple. Sometimes it is talked about in a good light and sometimes it is talked about for the wrong reasons. Whatever the situation is, there is no denying that the currency isn’t talked about. Well, it looks like the company is back on the defense again as Chief Technical Offer, David Schwartz, is making more denials. This time he is saying that the company did not use Ripple to raise funds through XRP sales. He claims that the company does not have an ICO and was simply financed by VC. For months now it has been in circulation that Ripple dumped huge amounts of the coin to make profits. Is this the case? If so, how could it affect the company?
Ripple Was Clearly Sold
When you make a transaction on the market there is no hiding it. This is just one of the things that make blockchain technology so great. That being said, there is no denying that that Ripple was sold by the company. Schwartz said that the company started selling XRP only after there was a market price hike compared to other cryptocurrencies. For many, this wasn’t really a major concern. What was really trouble was whether or not Ripple kept the profits made from selling the coin. This has not yet been proved or denied, but what is on record is the expansion of Ripple. Ripple has since expanded its company since these allegations were made, so it is possible this extra funding went to the expansion.
The Primary Purpose Of XRP
If you look at the Ripple price prediction, you are going to see that the price of the coin has stayed pretty steady since its induction. There have been some ups and downs, but they weren’t major. This is not something that can be said about a lot of other digital currencies. In fact, Bitcoin is currently at an all-time low. All that aside, what investors need to know is that XRP is just like any other cryptocurrency out there. It was created to make money, and that is exactly what it is doing. Although Schwartz denies these allegations, it is hard not to see how they are true. This is like saying that you don’t go into business for yourself to make money. Of course, you go into business for yourself to make money, otherwise, how would you expect to survive?
XRP Cannot Be Mined
What most people don’t understand is that XRP is a unique currency. It is unlike Bitcoin or other digital currencies out there given the fact that it cannot be mined. If one wants to obtain XRP they must first buy some other digital currency and then trade that currency for XRP. This is probably just one of the many reasons that the currency has stayed steady over the years. In fact, back in November of 2019, the currency hit a new high when it started changing hands at $0.3011 when the rest of the market was in crisis. These are just things that both new and current investors and traders want to keep in mind.