Debate has intensified within the XRP community after a series of public exchanges between Ripple critics and company representatives reignited questions about how the firm’s sale of XRP tokens affects holders. The discussion, which unfolded across social media posts, focused on whether Ripple’s use of proceeds from XRP sales primarily benefits the broader ecosystem or instead supports corporate activities that favor the company’s equity investors.
The debate began after Zach Rynes, known online as ChainLinkGod, argued that Ripple’s business model creates conflicting incentives between token holders and shareholders. According to Rynes, companies that issue both tokens and equity can create situations in which economic value accrues primarily to equity investors rather than token holders.
Rynes said that when companies generate excess revenue, the resulting value can be distributed in several ways, including dividends or buybacks for shareholders or mechanisms that benefit token holders. He claimed equity investors often have clearer legal rights to those returns.
In Ripple’s case, Rynes alleged that XRP sales have funded corporate acquisitions and Ripple Labs stock buybacks. He argued this approach directs value toward shareholders while XRP holders do not receive a comparable economic claim.
Rynes also questioned the token’s role within Ripple’s ecosystem. He pointed to past court filings in which Ripple acknowledged that XRP’s use as a bridge currency does not necessarily drive price appreciation. He also cited metrics such as market share in tokenized real-world assets and stablecoins to argue that the XRP Ledger does not dominate those sectors.
Ripple Chief Technology Officer Emeritus David Schwartz responded to the claims, focusing on the economic implications of XRP sales. Schwartz argued that if Ripple’s activities have consistently applied downward pressure on XRP’s price, that effect could benefit buyers who acquired the asset during that period.
He said a predictable factor that influences price would affect both the buying and selling sides of a transaction. According to Schwartz, if investors purchased XRP while such conditions were already known, they would have effectively benefited from the lower entry price.
Rynes rejected that explanation, arguing that framing downward price pressure as beneficial for holders was misleading. He maintained that investors who previously purchased XRP could not assume future price increases.
(adsbygoogle = window.adsbygoogle || []).push({});Other participants in the discussion defended Ripple’s approach. Logan Winn, an XRP community member, argued that many cryptocurrency companies sell tokens to finance development and operations.
Winn said funds generated from XRP sales have been used to build payment infrastructure and establish banking partnerships. According to him, Ripple’s expansion of liquidity corridors and institutional integrations could strengthen the network’s utility.
He also noted that the XRP Ledger operates as an open-source and permissionless system, meaning the network can function independently of Ripple’s corporate decisions.
Related: Ripple CTO: Selling XRP; Not Burning, Fuels Growth
