Ripple CEO Brad Garlinghouse said the company would not be profitable without selling the XRP native cryptocurrency.
He also said that the sale of XRP forms a significant share of the company’s profits. Earlier, Ripple was regularly accused of dumping XRP for profit, which as a result stopped the growth of XRP value.
XRP sales account for a significant portion of Ripple’s profit
In an interview with the Financial Times, Brad Garlinghouse admitted that a really significant portion of Ripple’s profits came from XRP sales. However, Ripple XRP sales were down 80% in the last quarter of 2019. When asked about XRP sales, Brad Garlinghouse replied that XRP is the only source. But at the same time, he asked to take away software revenues that make Ripple XRP even less profitable. And also remove the entire stock of XRP companies, which makes the income of Ripple even less profitable.
Ripple’s agreement with MoneyGram expires in 2023
The blockchain payment company Ripple entered into a strategic partnership with MoneyGram, an American money transfer company. Ripple transferred MoneyGram funds for using its technology for international payments, as well as for the necessary development of the payment infrastructure. Recently, MoneyGram announced that it received $ 11.3 million from the company in the 3rd and 4th quarters of 2019. The Ripple Agreement expires on July 1, 2023. MoneyGram noted that they suggest that partnering with Ripple will help them reduce their working capital requirements, as well as generate additional income and cash flows.