Legal Expert Reminds Chainlink’s Liaison: Ripple Has Not Sold XRP to Retail for Many Years

A recent exchange between pro-XRP lawyer Bill Morgan and Chainlink community liaison Zach Rynes has reignited a familiar argument in crypto circles. It cuts to the heart of how Ripple’s business model works and whether the company sells XRP at the expense of the community.

Ripple has not sold XRP to retail for many years. At least try to get the basic facts straight.

— bill morgan (@Belisarius2020) July 10, 2026

The Claim

Rynes opened with a sharp accusation. He said Ripple sells premined, zero-cost XRP to retail investors. He argued the company uses that revenue to fund stock buybacks and acquisitions that benefit only shareholders. Rynes called this a toxic arrangement.

He went further, describing XRP as a “bank-themed memecoin” with limited real utility beyond burning a fraction of a token per transaction to prevent spam on the XRP Ledger.

Bill Morgan’s Rebuttal

Morgan responded directly and didn’t hold back on the facts. He confirmed the misalignment theory has some merit and belongs in a risk-reward analysis. But he called Rynes’ version of it simplistic and said it needs to be heavily nuanced.

His central correction was simple. Ripple isn’t selling XRP to retail anymore. Sales now go to institutions or OTC desks. That single distinction changes who bears the exposure and how the transaction chain actually works.

Morgan also addressed the sponsorship angle Rynes raised, referencing Ripple’s college sports deal. He wrote that sponsoring a program “doesn’t make much sense if you think Ripple’s primary business is selling financial technology to banks.” He added that it makes perfect sense once you understand Ripple’s broader commercial strategy around XRP.

Institutional Demand And Long-Term Value

On the buyback question, Morgan pointed to something Rynes didn’t factor in. Institutional demand for XRP is rising. Without disclosure or hard data, he said, nobody can conclude the acquisitions Ripple makes will fail to add value to both Ripple shares and the XRP token over time.

His summary line captured his overall position. Institutions have “probably formed the same view as the market,” he said, that Ripple stock and XRP “can and do both increase over time even if not at the same pace.”

The Wider Thread

Rynes pressed Morgan on four specific points in the extended exchange. These covered equity misalignment, zero-cost-basis monetization, escrow mechanics, and third-party OTC sales. Morgan’s reply zeroed in on incentive structures. He disputed that Ripple’s fiduciary duty to shareholders automatically harms token holders, and Ripple has also reaffirmed its commitment to XRP.

David Schwartz, Ripple’s CTO Emeritus, also joined the thread. He challenged the idea that shareholder gains come at token holders’ expense. He noted that if the claim were true, XRP holders would have paid lower prices when they originally bought in.