- Ripple’s XRP sales are strategic, not cash-outs, aimed at building infrastructure that increases XRP’s long-term utility.
- XRP is treated as a core balance-sheet asset, with capital deployed into licenses, liquidity, and institutional integrations.
- Ripple’s “flywheel” strategy centers on XRP, where acquisitions and partnerships act as multipliers that drive real-world demand.
Crypto analyst CryptoinsightUK has challenged a long-standing criticism of Ripple, arguing that many observers misunderstand why the company sells portions of its XRP holdings. According to the analyst, detractors often come close to the truth but miss a critical step in understanding Ripple’s business model and long-term strategy.
The common claim, he noted, is that Ripple sells XRP in order to buy traditional companies and real-world assets as a way of generating revenue. While partially true on the surface, CryptoinsightUK says this framing gets the direction of causality wrong.
XRP Monetization Is Not About Replacing the Asset
According to the analyst, Ripple does monetize some of its XRP holdings, but not with the intention of replacing XRP with conventional assets. Instead, those sales are used to build an ecosystem that ultimately increases XRP’s utility and long-term value.
“That distinction matters,” CryptoinsightUK wrote, adding that if a company holds roughly 40% of an asset that could one day be worth more than its entire balance sheet, it would be irrational to treat it as ordinary operating cash.
Also Read: Massive XRP January Rally Confirmed? This Bullish Historical Pattern Just Repeated
XRP as a Strategic Balance Sheet Asset
CryptoinsightUK argued that Ripple views XRP as a strategic core asset rather than a disposable revenue source. In his view, it would make little sense for Ripple to sell what he described as an “asymmetric asset” simply to accumulate standard equity-style investments.
Instead, Ripple’s strategy is to deploy capital into infrastructure, licenses, liquidity venues, and institutional relationships that increase the necessity and value of XRP itself.
People who hate $XRP are so close to being right, so close. But they miss one key step to their equation.
Haters say Ripple sell $XRP so they can buy real-world companies and assets, because that’s how Ripple “makes money”.
In my opinion, that completely misunderstands the…
— Cryptoinsightuk (@Cryptoinsightuk) December 31, 2025
The analyst pointed to Ripple’s involvement with firms and initiatives such as Hidden Road, stablecoin infrastructure, and tokenized treasury rails. According to him, these assets are not the end goal, but multipliers that strengthen XRP’s role within the global financial system.
He outlined several ways these initiatives support XRP’s ecosystem:
- Expanding institutional liquidity
- Improving trust and regulatory compliance
- Increasing transaction throughput
- Creating real-world settlement demand
- Enabling a neutral bridge asset to operate at a global scale
In this framework, the companies Ripple works with are not replacing XRP but building the infrastructure that requires XRP to function efficiently.
The XRP Flywheel Explained
CryptoinsightUK described what he called the “flywheel” that critics often overlook. In this model, XRP remains at the center of Ripple’s balance sheet, while Ripple builds out payments, liquidity, custody, stablecoins, and treasury access around it.
As institutions engage with Ripple’s complete stack, XRP becomes the most efficient neutral settlement layer. Over time, demand compounds, and long-term price appreciation outweighs the impact of short-term XRP sales.
The analyst stressed that this process should not be viewed as dilution. Instead, he characterized it as strategic capital deployment aimed at maximizing the value of Ripple’s core asset.
“If Ripple’s goal were simply to become a profitable TradFi-style company, none of this would make sense,” he wrote, noting that Ripple’s focus on neutral settlement and regulated institutional rails points to a broader objective.
Endgame Focused on XRP’s Central Role
According to CryptoinsightUK, Ripple’s endgame is not to sell XRP in exchange for traditional assets, but to use those assets to make XRP unavoidable within global financial infrastructure. That, he concluded, is where most critics get it wrong, and why Ripple’s XRP sales should be viewed as part of a long-term ecosystem strategy rather than short-term monetization.
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