Home Altcoins News Brad Garlinghouse Ripple (XRP) A Consumer Speculator is not our Target Market

Brad Garlinghouse Ripple (XRP) A Consumer Speculator is not our Target Market

ripple XRP

Dusting out an old interview from Yahoo Finance all Markets Summit: A speech by a senior SEC official basically said, Ethereum and Bitcoin are not securities.  They are just each focusing a lot on decentralization.  And, that is apparently the key thing, no one is controlling it, there is no central actor, no third party.  He did not bring up Ripple, but I want to redo something, this is what he said:

There will continue to be systems that will rely on central actors whose efforts are the key to the success of the enterprise. Doesn’t that sound a lot like Ripple? Like XRP?

Brad Garlinghouse:  I think that sounds a lot like the ICO market.  I think these ICOs are issuing tokens.  They haven’t even released any code. There is no working code.  There is no open source community developing that code.  And, so they are releasing tokens and those are effectively – but I think the SEC are saying for really a year now they are getting a little more aggressive about it.  They are saying, these are securities.  I think it is really clear the XRP is not a security.

I will give you 3 key arguments here:

One thing is if Ripple, the company shuts down tomorrow, the XRP ledger would continue to operate.  It is open-source decentralized technology that exists independent of Ripple.  The second is if you buy an XRP, they don’t think that they are buying shares of Ripple.  There is a company called Ripple, we are a private company, there are people who bought shares from Ripple the company, but buying XRP does not give you the ownership of Ripple.  It does not give you access to dividends or profits that may come from Ripple. 

Question:  But doesn’t your treasury management at Ripple hoard XRP, won’t that suggest for the success of XRP in the long run?

No I don’t think the ownership of XRP gives us control.  It is an open source decentralized technology. Because, we own a lot of the asset – Saudi Arabia owns a lot of oil.  That it is getting control of oil.   So, I think there is a whole lot of examples where XRP behaves and acts a lot more like a currency or commodity. 

The first one is that it is existing independently, the second one is the ownership point, and the third one is back to utility.  XRP is solving a problem – Securities don’t.  There is no utility in a security.  So, I think the SEC, I look forward to them clarifying some of these things.  I thought they were announcing that Ether was not a security, it was actually a positive thing for the industry for sure.  I look forward to their further decision making.

A consumer speculator is not our target market. Our target market are financial institutions that we can solve a big problem measuring trillions of dollars using these technologies.

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Steven Anderson

Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche. Send a tip to: 0x200294f120Cd883DE8f565a5D0C9a1EE4FB1b4E9

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