Ripple (XRP) is having a lucrative year-end: its price exploded by 91% in November 2020, the company made $ 15 million by selling MoneyGram shares bought in 2019. This sale would not affect for as much the relations between the 2 companies.
MoneyGram replenishes Ripple’s crates
Ripple Labs sold a significant portion of the shares of MoneyGram which he acquired in 2019.
According to documents filed with the SEC on December 4, 2020, Ripple Labs sold 2,264,113 shares for an estimated capital gain of approximately $ 15 million.
In recent months, the value of shares of MoneyGram had increased significantly from $ 2.94 on October 1, 2020 to $ 8.53 on November 23, 2020.
The news of the sale impacted the stock price of MoneyGram which dropped to 6.54 USD.
This is the first such operation performed by Ripple Labs since its participation in the capital of MoneyGram.
Ripple, MoneyGram: sell and not break
The leaders of Ripple Labs claim that this transaction does not affect relations between the two companies.
A spokesperson for Ripple said the company is proud to be part of the digital transformation of MoneyGram.
This sale would be a purely financial decision, the objective of which was to make a profit on the investment of Ripple.
The 2 companies have been partners since June 2019; Ripple had then made an investment of $ 50 million in the capital of MoneyGram.
This partnership allows MoneyGram to use technology ODL – formerly baptized xRapid – to speed up fund transfers.
The XRP had recently recorded a dizzying rise in its price, in particular thanks to the buy-back strategy adopted by Ripple Labs which owns 48 billion XRP.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
Is Ripple here to revolutionize cross-border payments or just to make money? The company is playing on ambiguity about the status of its token – utility or security – to increase their sale to XRP fans who believe Ripple will make them rich. The entry into the capital of MoneyGram was therefore solely for financial and not strategic purposes – to exploit possible synergies. The company now wants to get closer to central banks, to support the development of CBDCs.
Brad Garlinghouse and his team surely sensed a lode to make a few million dollars more by selling their cross-border payments software to central banks. Money first, the fight for decentralization after!
Litecoin, welcome in the Silver Age