Ripple Stops Quarterly Reports – XRP Price Curve Folds
Ripple will no longer publish quarterly transparency reports, CEO Brad Garlinghouse announced. This decision is met with criticism, also because there are currently disputes over XRP worth billions of dollars with the US Securities and Exchange Commission (SEC).
In the crypto scene, transparency is viewed as a good quality – many projects voluntarily provide insights into finances. Right from the start, Ripple had relied on financial reports that were released quarterly and were meant to inform about the sales and availability of XRP. But now Ripple CEO Brad Garlinghouse announced the discontinuation of these quarterly reports. This decision is made just as Ripple is in a legal battle with the SEC, in which XRP holdings amounting to almost ten billion US dollars are involved.
According to Garlinghouse, the quarterly reports are no longer necessary because the legal dispute with the SEC is largely clarified and Ripple is now going in the direction of the IPO. For him, the information given in the reports about XRP are obsolete – but not only there, opinions differ on this.
Selling XRP on a larger scale has been a significant source of revenue for Ripple over the years. However, these sales have never been without controversy, even raising accusations around the legal interpretation by the SEC. XRP is classified as security, and any sales fall under special supervisory rules. Price movements of XRP are an important indicator for market observers whether, and when, Ripple resumes sales of XRP from its reserves.
Meanwhile, the latest transparency report showed that Ripple had continued to sell XRP in the second quarter of 2023, albeit less than previously. Alongside the quarterly report, Ripple had also always included comments on the use cases for XRP, which proponents consider to highlight the value of XRP.
Ripple’s stop of the reports is an admission that regulatory clarity on XRP remains unsatisfactory for them, say critics. Indeed, the SEC has claims against Ripple for holding a large part of XRP unjustly and has also largely blocked reserves. A calculable way to sell XRP again to finance business activities remains important. However, communication about XRP’s business model might now become more difficult for Ripple.
XRP’s price curve reacted negatively to the news about the stopped reports – only tenths of a cent, but with acknowledgment that future informational deficit might weigh on market positioning. Once Ripple pursues its plans more and ensures insight into its reserves, the confidence in XRP will grow, or so they say with renewed hopes. Until then, this ends a long tradition of voluntary transparency and provides new room for speculation.
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