In an interview with CNN on September 12, Brad Garlinghouse, CEO of Ripple, denied the accusations of manipulating the price of XRP. Discussing various aspects of XRP and the significant power it may potentially have, host Julia Chatterley at one point referred to the uproar in the XRP community.
Several recent partnerships and XRP transfers have caused the cryptocurrency to fall in price. Due to the ‘dump’, a significant number of XRP holders discussed the situation on social networks such as Twitter. The community came to an agreement where they decided that they would create a hard fork if Ripple would continue to negatively influence the price of XRP.
In the interview, host Julia Chatterley mentioned the possible ‘takeover’ to the CEO and asked Garlinghouse what his stance is. Referring to the question concerning the level of market share Ripple has over XRP, Garlinghouse stated that Ripple is the largest owner of XRP. He additionally stated that Ripple is the ‘most interested party in the success of the XRP ecosystem.’
Discussing the price, the CEO said that Ripple is not dumping XRP on the market as it would not be in the interest of the company to disturb the ecosystem of XRP. When asked if Ripple has the power and influence to control the price of XRP, Garlinghouse replied by saying that Ripple can’t control the price and that their influence is on the same level of a crypto whale affecting the price of Bitcoin.
The cause behind XRP’s dump
Garlinghouse has previously explained the situation when the first signs of a possible hard fork appeared. The XRP community mentioned the possibility of a takeover for the first time on 28 August, when Ripple’s CEO was forced to quickly explain the situation. Garlinghouse explained that recent partnerships and XRP sales were made to significantly improve XRP’s utility.
He said that developing RippleNet and other businesses partnerships was one of the main causes behind the price reduction. PNC, the eighth largest bank in the US, has recently started using RippleNet for making cross-border payments.
As much as the recent partnerships and developments caused a drop in price, the decisions were brought in good faith and they may have a long-term effect. Comparing their asset to other cryptocurrencies such as Bitcoin and Ether, Garlinghouse claimed that XRP’s inflation was lower than that of Bitcoin or Ether.
The future of Bitcoin and XRP
Discussing the potential use case and significance of Ripple in the world, Garlinghouse stated that the value of XRP will be seen in the long-term, once it has a significant level of utility. Ripple’s CEO also added that the same can be said for any other cryptocurrencies, and the main factor behind the asset’s price is the utility it delivers.
Praising the fundamental technology behind XRP, Garlinghouse claimed that transactions done via XRP are 1,000 times faster and less expensive compared to a Bitcoin transaction.
Commenting on the state of Bitcoin, the CEO said that he is optimistic and that the most popular cryptocurrency will certainly have a utility in terms of being a store of value at a certain point, calling Bitcoin digital gold.
However, Garlinghouse said that the asset cannot possibly act as a payment solution if transactions take more than 12 minutes to complete and the fees are more than a dollar. He further stated that XRP is a far better solution in that regard and that it is significantly well positioned to act as a payment solution.