The question of whether the Ripple company has too much XRP has been thought of by many long-standing cryptocurrency investors. This discussion was highlighted when the company blocked 55 billion in Escrow last December to ensure the predictability of the money supply. In fact, the simple fact that Ripple owns a large amount of XRP is the reason why the company is currently facing 3 lawsuits from disgruntled traders who believe the company has issued a securities offering with XRP that represents a share of its holdings.
But let's talk about Charlie Lee's recent comments during an interview at the Asia Blockchain summit in Taiwan. During the interview, Charlie Lee explained the reasons why he sold his LTC holdings and provided comparisons between LTC, Bitcoin and XRP.
Charlie Lee said he was relieved after selling his entire LTC for the decision he had weighed on his mind for over 2 weeks. His main reason for the sale was that he wanted to focus more on the Litecoin project rather than wasting his time worrying about its price in the markets. As a result, we have seen the Litecoin Foundation acquire the partnership after the partnership this year. Some of them include with Abra, TokenPay and WEB Bank.
When discussing XRP, Charlie states:
"There are many possibilities. … Ripple [*XRP] is a bit like a diamond because even his power is artificially controlled, and diamonds are actually advertising. … If you want to buy Ripple for marriage, it's very precious, haha! "
In a sense, Charlie Lee is right for society Ripple blocked 55 billion XRP in custody. They have "squeezed" the current offering at current levels of 39.315 billion. But since the company Ripple and XRP are a separate entity, its XRP falls within the rights of Ripple to HODL in any way it deems appropriate. Blocking your XRP in engagement is similar to the way you block your digital assets in a Ledger Nano S.
In conclusion, Charlie Lee is really right that XRP is artificially controlled but only if you consider XRP as part and pack of Ripple Company. However, since then we have learned that these are two different entities. Once you have grasped this idea, we realize that Charlie Lee is wrong from this perspective.
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Disclaimer: This article should not be taken as and is not intended to provide investment advice. Global Coin Report and / or its affiliates, employees, writers and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own in-depth research before investing in any cryptocurrency and read our full disclaimer
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