Brad Garlinghouse, CEO of Ripple, said selling XRP constitutes an important part of the company's profits.
“We would not have had a positive profit or cash flow without selling XRP,” Garlinghouse revealed in one report by the Financial Times on Friday.
"Yes, XRP is a revenue source. I don't know how to answer that because if you take away our software revenue, that would make us less profitable. If you take away all of our XRP, that makes us less profitable, "he added.
Commenting on this news, cryptocurrency trader and analyst Luke Martin has tweet today that Ripple is “alive” thanks to XRP “dumping” to the public.
Notably, Ripple's total XRP sales fell 80% in the fourth quarter. This sharp decline was a result of the organization's direct sales decline, as well as a pause in Ripple's program sales – or XRP sales for cryptocurrency exchanges.
Encourage customers to keep XRP?
Interestingly, Garlinghouse also revealed that companies using Ripple's solutions are being encouraged depending on their “shape, size, type and priority”.
Last week, Ripple's MoneyGram customer announced that it received $ 11.3 million from blockchain payment starup in the third and fourth quarter of 2019. Notably, that money was paid in XRP, MoneyGram saved Italy in a 10-K sample document released on Friday.
"The company is compensated by Ripple with XRP to develop and bring liquidity to the forex market – which is facilitated by the ODL (Liquidation at Ripple's Required) platform, and provides a level of confidence. reliability of foreign exchange transactions. We call this compensation the market development fee. "
MoneyGram further emphasized that “it accounts for the proportion of XRP received as an intangible asset with an infinite lifetime, measured based on XRP's fair market value.”
"Any future liquidation of such intangible assets with such a lifetime will result in a profit or loss and will be stated in 'possession, equipment and supplies' in the Total Activity Report suitable, "MoneyGram adds.
Finally, the company said it hopes the partnership with Ripple will help them reduce the need for working capital and generate more income and cash flow.
Ripple's agreement with MoneyGram is expected to expire on July 1, 2023, according to 10-K records.
Maybe you are interested:
Join our channel to stay up to date on the most useful news and knowledge at:
According to The Block
Translated by ToiYeuBitcoin