XRP investors have been growing increasingly frustrated with Ripple due to reports that the company has been consistently selling significant amounts of XRP holdings onto the markets.
The frustration appears to have reached a boiling point, as one prominent XRP investor is now rallying the community to fork the cryptocurrency.
A Change.org and Twitter user going by the name of Crypto Bitlord started a petition “Stop Draining Ripple” earlier this month asking Ripple to stop dumping its XRP holdings.
Twitter user @CryptoBitlord that has over 100,000 followers shared his latest idea for a community effort:
“I’m thinking about forking $XRP so we don’t have to deal with the founders dumping. — This will be a community effort. Retweet if you’re in.”
Crypto Bitlord even addressed the Ripple CEO and CTO:
“Brad Garlinghouse, Joel Katz, you now have 60 days to stop dumping XRP or we will stage a community takeover. If it’s a decentralized network like you say, we have the power to do it.”
There has been a stream of reports and analysis on Ripple selling considerable amounts of XRP coins with the premise that funds are being used to finance startups developing the ecosystem.
Back in July, Ripple‘s Q2 report disclosed that the company had sold $106.87 million and $144.64 million worth of XRP in institutional direct sales and programmatic sales respectively.
Overall, Ripple already sold over $1 billion worth of XRP with most of that (ca. 65%) going to institutions and the remainder (ca. 35%) being sold on exchanges.
Garlinghouse has also provided a response categorizing the complaints as FUD (fear, uncertainty and doubt) targeted towards the project. He stated:
“XRP sales are about helping expand XRP’s utility — building RippleNet & supporting other biz building w/XRP ie Dharma & Forte. Reality is we DECREASED our sales by volume Q/Q and since then the inflation rate of XRP circulating supply has been lower than that of BTC and ETH.”
The question marks around XRP being classified as a security in the U.S. are still looming over the project. The new filing cited guidance issued by the United States Securities and Exchange Commission (SEC) hints that XRP could be classified as a security.
Garlinghouse provided as short response saying that the SEC guidance isn’t issued by the Commission and shouldn’t be viewed as law. In addition to that, the CEO refrained to comment in detail on the ongoing lawsuit against Ripple, initiated by an investor alleging XRP was sold as an unregistered security.