Ripple CEO has offered a bold prediction for 2020. Brad Garlinghouse, CEO of Fintech company, provided insights stating that what he predicts is set to happen in the forthcoming year.
He stated, “I think you’re going to continue to see consolidation. The world doesn’t need 3000+ cryptocurrencies out there, and I think the utility will bear out that there will be a migration to quality if you will.”
He further stated that out of the 3000 numbers of cryptocurrencies, it is not clear as to how many of them will disappear this year. However, he believes that 99% of the cryptocurrencies will disappear.
The utility of XRP does not impact customers and retail investors. When thinking in terms of the upcoming consolidation, a lot of smaller Altcoins will be considered useless, and investors will flock into significant cryptocurrencies like Bitcoin and Ethereum’s.
Angel investors and venture capitalists fund Ripple. Former Bitcoin developer Peter Todd started a twitter debate, which revolves around the idea of whether Ripple ran an initial coin offering (ICO) by selling off XRP tokens.
Ripple CTO David Schwartz, in turn, replied, stating that the blockchain titan does not need money from those to buy the tokens as venture capitalists and angel investors fund them.
David Schwartz tweeted: “Nobody buys XRP to give Ripple money to do things. We were VC/angel-funded and were going to build regardless. We started selling XRP only after there was a market price and for negligible amounts compared to our other funding.”
He further clarified that several companies develop themselves with the funds they raise with ICOs; however, Ripple will be able to develop with the help of its VC funding.
Schwartz clarified that XRP was never a fundraising mechanism to get things up and running. Further added, “Even if that’s true now, it certainly wasn’t true years ago.”
Ripple is controlling about 55% of the XRP tokens. They unlock 1 billion from their escrow wallet every month. Further, the company is following a very conservative approach. And, it is not clear as to what they are doing with the $1.2 billion they sold since the fourth quarter of 2016.
Bard Garlinghouse, the CEO of Ripple, stated that these sales were essential to ensure the growth of the RippleNet and XRP-related business.
Peter Todd further added that “XRP doesn’t give investors a real right to anything.”
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
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