The CEO of Ripple Labs, Brad Garlinghouse, has acknowledged that the company would not be profitable without selling Ripple (XRP). Garlinghouse specifically saysWe would not be profitable or cash flow positive without selling XRP.”

Essentially, Ripple Labs would not be sustainable without persistently dumping Ripple (XRP) onto the market. In other words, the money to fund Ripple Labs comes out of the pockets of Ripple (XRP) HODLERS.

Indeed, a previous article on Crypto.IQ discussed how Ripple Labs dumped $181.6 million of Ripple (XRP) in 2017 and $535.6 million of Ripple (XRP) in 2018, likely contributing to the severity of the 2018 Ripple (XRP) bear market. In 2019 Ripple Labs went on to dump another $500 million of Ripple (XRP).

Ultimately, Ripple Labs’ consistent Ripple (XRP) selling has drastically devalued Ripple (XRP), and it appears this will continue for the long term, since Ripple Labs still holds 56.2 billion Ripple (XRP).

Overall, it seems nonsensical for crypto traders and users to choose to hold Ripple (XRP), since Ripple Labs is persistently siphoning money out of the market via centralized dumping. It is much better to hold an asset with a decentralized supply like Bitcoin (BTC).