Ripple CEO Brad Garlinghouse's recent sale of $200 million in XRP has sparked frustration within the XRP community. Many are questioning the motivations behind this decision amid regulatory scrutiny and market dynamics.
Context of Past XRP Sales
This sale is not the first time Garlinghouse has faced scrutiny regarding his XRP holdings. In a 2020 lawsuit, the SEC disclosed that he sold approximately $600 million worth of XRP from 2017 to 2020, primarily on non-U.S. exchanges. These sales were central to the SEC's claims that Ripple executives profited from unregistered securities offerings.
Community Reaction and Trust Issues
The backlash from the community has been swift, with figures like Crypto Bitlord questioning, "If XRP is the future of finance, why would he sell now?" Some users even go so far as to label XRP as a scam, citing these executive sell-offs as evidence that key figures are cashing out while everyday investors hold onto their hopes.
Defense of the Sale
Supporters of Garlinghouse argue that executives are entitled to sell tokens for personal diversification, tax strategy, or liquidity, especially after years of regulatory hostility. They also highlight that Garlinghouse retains a significant amount of XRP and Ripple equity, with his net worth in the billions. However, critics believe the optics are damaging, particularly when the community expects utility breakthroughs and corporate adoption.
The events surrounding the XRP sale have ignited debates and frustrations within the community, raising concerns about trust in the future of the digital currency and Ripple's strategies amid growing skepticism.
