Ripple CEO Brad Garlinghouse provided clarifications regarding the differences between XRP tokens and company shares amid controversy related to the Linqto platform.
Distinction Between XRP Tokens and Ripple Shares
Garlinghouse noted that there are significant differences between XRP tokens and Ripple shares, a matter that has raised questions among investors. He emphasized that XRP is a digital currency used in the company’s payment solutions, while Ripple shares represent ownership in the company itself.
Ripple's Position on Linqto
Garlinghouse confirmed that Ripple has no formal ties with Linqto and stressed that the 4.7 million shares held by Linqto were purchased on the secondary market. As he stated: 'Ripple has no control over how Linqto structured or sold these units.'
Investor Reaction to the Current Situation
Some investors expressed concerns and demanded refunds for their investments, however, an attorney supporting the XRP stance warned against potential negative implications of refunds for the platform. He highlighted that refunding at cost could lead to unfair benefits for Linqto.
Garlinghouse's comments emphasize that Ripple is not responsible for the actions of third-party platforms selling shares, and it is important to distinguish between XRP tokens and company equity.
