Ripple CEO Brad Garlinghouse has admitted that the company cannot achieve profitability without selling XRP. Ripple CEO Brad Garlinghouse said that XRP sales are an important part of the company’s profitability.
“If XRP is not sold, we cannot provide profitability or cash flow,” Garlinghouse said on Friday in the Financial Times. Garlinghouse also said, “Obviously XRP is just a resource. I don’t know how should I answer this question. Because if you take away our software, it makes us a less profitable company. If you also get the XRP we have, this makes us a less profitable company. As a result, we should not consider this as a single issue. ”
Meanwhile, Ripple’s total XRP sales decreased by 80% in the fourth quarter. This sharp decline was accompanied by the decline in corporate sales and the regular sales of Ripple, in other words, the decrease in sales in crypto exchanges.
On the other hand, Garlibhouse stated that companies using Ripple solutions are encouraged according to “shape, size, type and high priorities.
Indeed, last week, Ripple customer MoneyGram announced that it received $ 11.3 million from the company in the 3rd and 4th quarters of 2019. The payment was made with XRP
MoneyGram also stated that the acquired XRP was accounted for as ‘an uncertain asset measured on the basis of market value’. The company also said, “Such intangible assets, which are uncertain for the future, will result in capital profit or loss and will be recorded as equipment and materials in the operating table”.