Brad Garlinghouse, CEO of Ripple
You are receiving this email because you are a free subscriber to Off The Chain. Free subscribers get a daily email with a podcast interview, a recorded reading of a letter to shareholders, curated tweets, and an overview of what's in the paid subscriber emails. To receive the paid subscriber email, subscribe today.
LISTEN TO THIS EPISODE OF THE OFF THE CHAIN PODCAST HERE
Last week I sat down with Brad Garlinghouse, CEO of Ripple, to have an unfiltered conversation about Ripple, XRP, and a number of controversial topics.
Ripple is a real-time gross settlement system, currency exchange, and remittance network created by Ripple Labs Inc., a US-based technology company. The company’s products use a digital currency, XRP, to facilitate payments across the network. XRP is a $12 billion asset and is currently the third largest crypto asset by market cap.
There has been a lot of controversy around the company, particularly the digital currency XRP. These issues have included, but are not limited to, whether XRP is a security, how Ripple sells XRP to drive revenue, and the effect these actions have on the retail market.
This conversation has been highly anticipated, so I want to make a few things clear up front. Brad participated in this podcast episode without he or his team reviewing my questions beforehand, there was no payment of any kind that exchanged hands, and the episode has not been edited in any material way other than the removal of prolonged silences or filler words like “uh” or “um.”
When I agreed to record this episode, I figured that both supporters and detractors of Ripple or XRP would be unhappy with the final product. That is okay with me. I spent quite a bit of time preparing for this interview, including talking to people from both sides, along with crowdsourcing a lot of questions that people wanted answered.
I hope you listen to this episode with an open mind and walk away thinking the conversation was fair and balanced.
🚨 IF YOU WANT THE SHOW NOTES, YOU CAN SUBSCRIBE AND SEE THEM HERE. 🚨
In this conversation, Brad and I discuss:
Brad’s time as SVP at Yahoo running Communications Division and President of Consumer Applications at AOL [1:10];
His first time being introduced to crypto, blockchain, and Bitcoin [6:00];
His brief stint as an Uber driver and the inbound recruiting call he received that began his journey at Ripple [7:30];
The difference between Ripple and XRP, the utility of both, and how he responds when someone asks: “what does Ripple do?” [11:45];
The three components of RippleNet - xCurrent, xRapid, and xVia – and how they leverage Ripple’s software and the XRP ledger [15:10];
The relationship between security and speed: the tradeoff between increasing speed and giving up security. Comparing Bitcoin vs. XRP [21:20];
Closer look into how xRapid (on demand liquidity) leverages the XRP ledger to provide a faster and lower-cost payment system for cross-border transactions [28:00];
The challenge surrounding interoperability, liquidity, and utility of blockchain systems and digital assets [37:30];
Law enforcement and governance: playing within the rules and regulations, and the threat of cryptocurrency on a nation’s sovereignty [43:00];
Devil’s advocate: Brad’s take on XRP sales, revenue, and OTC trading. Addressing the detractors and a clear look at the structure of Ripple’s ecosystem [52:05];
Understanding the structure of Ripple’s escrow system and controlling the circulating supply of XRP [56:25];
Calculating market cap, inflation rate, and identifying misleading data. The importance of restricted selling agreements [1:08:00];
The next step for Ripple: expanding to new verticals and how Brad thinks Ripple will shape the future of the financial technology [1:11:00];
The Ripple community and the origin of the XRP army [1:16:15];
Elephants in the Room: Is XRP a security? EOS settlement with SEC and the impacts of a settlement on the business [1:18:45];
Brad’s favorite book and why he thinks aliens are real [1:22:40];
Pomp responds to how “this conversation has changed his view on Ripple and XRP” [1:23:45];
I really enjoyed this conversation with Brad. Hopefully you enjoy it too.
LISTEN TO THIS EPISODE OF THE OFF THE CHAIN PODCAST HERE
Click here for show notes for this episode!
In this new podcast, I read through letters, notes, and memos from investors and entrepreneurs that cover financial insights from the world's most successful companies and investors. The podcast is sponsored by eToro, the world’s leading social trading platform.
Today’s episode is:
The team at Pinterest released their prospectus overview earlier this year. You can now listen to their summary of the business, along with how they think about the future potential for growth and profitability.
LISTEN TO THIS EPISODE OF THE “LETTERS TO WALL STREET” PODCAST BY CLICKING HERE
This morning’s letter to paying subscribers was about Uber, Lyft, and Apple’s recent forays into streaming payments. I go into detail about what they are doing, why, and how true digital currencies could not only improve these processes, but also unlock additional value for millions of people, both in the developed and developing world.
If you want to read my thoughts on the topic, along with my analysis of the top crypto trends each morning, subscribe for $2.50 per week to receive the subscriber email daily.
Today’s news section for paying subscribers included coverage of the following companies and individuals:
Bitwise
Securities and Exchange Commission
Ripple
Bpifrance
West Virginia
QuadrigaCX
To read a curated list of the most important crypto news stories each morning, subscribe for $2.50 per week. It will be everything you need to know, in your inbox, every day. No brainer :)