Ripple has secured $200 million in Series C to boost the adoption of XRP cryptocurrency and the XRP Ledger. While many are still trying to make sense out of it, a crypto influencer Larry Cermak points that it is a revenue-generating mechanism for Ripple if the firm ever succeeds in establishing itself as a “Payment Company.”
The Series C round was led by the Tetragon investment firm, Japan’s SBI Holdings, and Route 66 Ventures. As part of Ripple, it seeks to push XRP adoption forward alongside the native blockchain network XRP Ledger. It also said that the firm is trying to get in new talent with global expansion. To strengthen this fact, Brad Garlinghouse, CEO of Ripple, recounts that Ripple is “in a strong financial position to execute against its vision.”
He further emphasized that the other companies in space have “slowed their growth or even shut down,” whereas Ripple continued its “momentum and industry leadership throughout 2019.”
While at one hand, Ripple cherished the new funding, on the other hand, the community is accusing Ripple of dumping the value of XRP. However, the irony is that the Larry Cermak who is by profession a director of Research at The Block and often considered as crypto influencer remarked his view on Ripple’s funding as follows;
If Ripple ever somehow makes it work as a payments company, it will be the equity holders that benefit and the XRP holders holding a massive bag. XRP is a revenue-generating mechanism for Ripple, nothing else. Ripple has so far sold $1.2 billion in XRP – the majority of its revenue
In a series of tweets, he further noted that the Ripple has already sold millions in XRP over the last four quarters and also receiving millions in venture capital. Larry recalled Garlinghouse’s statement, which once told Fortune, a media publication that; Ripple didn’t need money, but the funds will provide “balance sheet flexibility.”
Whatever the fuck that means. Diluting equity because they couldn’t dump enough XRP on people this year. It’s a massive joke, he tweeted.
The fact is that the XRP cryptocurrency this year has lost its value drastically. While the token began 2019 with a value of $0.36, it is likely ending the year with a value below $0.20 against USD.
Larry, while responding to a user’s comment on his tweet, says that XRP has lost 72% v/s BTC, but the XRP crypto community squashed his opinions by providing their reasoning to the fact. One such user said;
So are you saying that basically either the investors are outright stupid or there’s some moat only the equity holders will benefit from? $200M is a lot!
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