Ripple CTO Explores XRP Impact In Context Of Forgoing IPO
The post Ripple CTO Explores XRP Impact In Context Of Forgoing IPO appeared on BitcoinEthereumNews.com.
In a recent conversation on X, David “JoelKatz” Schwartz, the Chief Technology Officer of Ripple, delved into the intricate dynamics between XRP and the company’s decision to move away from a traditional Initial Public Offering (IPO). This discussion offers a deep dive into the strategic choices and financial nuances. Ripple Is Like Amazon Schwartz, who is known for his straightforward nature and open communication with the XRP community, initiated a thought-provoking dialogue about corporate governance in the context of the drama around OpenAI and Sam Altman. He questioned the effectiveness of traditional corporate structures in big tech companies, remarking, “I was just thinking, maybe a board that’s not accountable to investors and leaving the CEO and employees out of the upside isn’t such a great way to run a multibillion-dollar tech company.” This statement sparked a debate with Blockchain Maverick, a participant in the discussion, who argued that XRP holders should be regarded as investors in Ripple, given that a significant portion of the company’s operational funding comes from the sale of XRP tokens. Maverick’s stance mirrors a broader discussion within the crypto community as well as the SEC’s arguments in the legal battle. In a compelling response, Schwartz compared his company with Amazon’s business model. He explained, “Most of the cash that fuels Amazon’s biz operations comes from people who use their site to buy things from other people. Does that make them investors in Amazon?” Schwartz Thoughts Why There Hasn’t Been An IPO Yet Further exploring the financial trajectory of the company, Schwartz shed light on his personal stance and initial expectations regarding Ripple’s path to profitability. He disclosed, “My intention and belief were always that the way this would make money was for Ripple to IPO. That’s one of the reasons I didn’t take XRP but instead…
Filed under: News - @ November 22, 2023 10:10 pm