Ripple and XRP: Security or Not?First, Sagar Sarbhai told CNBC on Monday that Ripple does not find XRP to be a security. Sarbhai provided three reasons for this:
- If an investor purchases XRP, that individual will not get a stake in Ripple the software company. Why? "Dividends are not paid out by Ripple."
- As Cory Johnson said at the start of the summer, Ripple and XRP are two separate entities. If Ripple goes away, the XRP ledger will remain. "XRP ledger is open-source," said Sarbhai.
- Ripple only owns around 10 out of 150 validators.