XRP News Today: Ripple CEO Clarifies XRP and Company Shares Distinction Amid Investor Confusion

Ripple CEO Brad Garlinghouse has taken the initiative to clarify the confusion surrounding the distinction between XRP, the digital asset, and Ripple's company shares. In a statement released via X, Garlinghouse emphasized that XRP and Ripple shares are two entirely separate assets. XRP is a digital asset, while Ripple shares represent ownership in the company and have no direct connection to XRP.

This clarification comes in response to growing investor misunderstandings, particularly after Linqto's sale of Ripple shares on its platform. Many buyers mistakenly believed they were purchasing stocks directly from Ripple. Garlinghouse clarified that Ripple was not involved in these transactions and has no official relationship with Linqto. He confirmed that Linqto acquired approximately 4.7 million Ripple shares through secondary market transactions with initial investors, a process in which Ripple was not involved and did not authorize.

Ripple's decision to halt all secondary share transactions involving Linqto in late 2024 was driven by concerns over brand protection and the potential for further investor confusion. Garlinghouse criticized Linqto's handling of the sale process, stating that Ripple was unaware of how the platform defined the shares or managed customer funds. He reiterated that Ripple has never engaged in any dealings with Linqto and did not participate in any funding rounds associated with the company.

Garlinghouse also expressed uncertainty about how Linqto plans to address any issues its customers may now be facing. While Ripple's stock has appreciated over time, he cautioned potential investors that any profits made through Linqto are beyond Ripple's control. This statement underscores Ripple's commitment to maintaining a clear distinction between its digital asset, XRP, and its privately held shares, aiming to eliminate any further confusion among investors.