• Ripple Labs was established to distribute XRP and generate revenue from sales to sustain its operations.
• Brad Garlinghouse has acknowledged the company’s reliance on XRP sales for survival.
• The outcome of the SEC vs. Ripple lawsuit holds significant implications for the future of XRP and wider cryptocurrency market.

Ripple’s Revenues Depend on XRP Sales

Ripple Labs, headquartered in San Francisco, was established with the goal of distributing XRP as widely as possible and generating revenue from sales to sustain its operations if necessary. This comes at a time when the U.S. Securities and Exchange Commission (SEC) is suing Ripple for allegedly conducting unregistered sales of securities through XRP which raised over $1.3 billion. Ripple’s CEO, Brad Garlinghouse, has acknowledged that selling XRP has been critical in keeping the company afloat, raising questions about its reliance on these sales for revenue.

David Schwartz’s Clarification

In order to address this discourse surrounding purpose and nature of XRP sales, David Schwartz – Chief Technology Officer at Ripple – recently clarified that Ripple was created specifically to distribute XRP and be able to generate enough revenue from selling it or related activities to maintain its operations if needed.

The Implication of SEC vs Ripple Case

The outcome of the ongoing SEC vs Ripple case will have substantial implications for not only the future of XRP but also crypto industry in general as a whole; with final determination on lawfulness of such sales and potential consequences remaining uncertain until first half of this year comes to pass.

Ripple Acknowledges Its Dependence

In an old interview with Financial Times, Garlinghouse openly admitted that without selling tokens like XRP; Ripple would be losing out on a lot cash resources thereby necessitating their dependence upon such activities for survival purposes alone. Some detractors however argue that this lack of viable business model casts a shadow upon legitimacy of cryptocurrency itself in question here too.

Conclusion

Despite the criticisms leveled against them; it is clear that Ripple still maintains that such token based sales are essential components towards generation revenues which can help sustain their operations in long run .