Merlijn says Garlinghouse should not be attacking Saylor since Ripple funds itself by selling XRP from escrow every month.
As more opinions on Strategy’s latest bitcoin (BTC) moves surface within the crypto community, trader Merlijn has countered Ripple CEO Brad Garlinghouse’s stance on the matter.
In a tweet addressing Garlinghouse’s remarks on Strategy’s recent BTC sale, Merlijn insisted that both Ripple and the business intelligence firm use the same funding models. In other words, the Ripple CEO is in no position to reprimand Strategy and Michael Saylor when they have similar approaches to the market.
Trader Challenges Garlinghouse’s Comments on Strategy
Over the weekend, CryptoPotato reported that Garlinghouse said during an interview with CNBC that Strategy’s Bitcoin model is hurting the crypto market. The leading Bitcoin treasury firm broke its BTC purchase streak weeks ago and sold some part of its holdings. The move sparked an uproar in the market, as the company has been one of the major drivers of BTC demand.
Although Strategy subsequently resumed BTC purchases, that sale triggered a lot of criticism from big names and market experts. Garlinghouse was of the opinion that Saylor has not been focused on how to build a strategy around the right features of BTC. He said the company’s purchase model added some excitement as BTC rallied; however, the same approach is now compounding negatively as the asset declines.
To the Ripple CEO, Strategy has been using a leveraged purchase model through the company’s Stretch stock, STRC. With the stock trading 25% below its par price of $100, the market is beginning to witness how Strategy’s model compounds negatively when BTC corrects. Garlinghouse believes Strategy should focus on creating long-term value and utility, not financial engineering through its BTC funding model.
Two Giants, Same Model
Although Merlijn believes Ripple CEO is right about STRC being in distress, the trader says Garlinghouse should not be attacking Saylor. Since Ripple funds itself by selling XRP from escrow every month, the company shares a similar model with Strategy.
In Merlijn’s eyes, Strategy and Ripple are just two giants with similar funding models that lean on the market they are defending. Since the funding models of both entities contribute to selling pressure for their individual assets, Merlijn sees no point in Garlinghouse’s criticism. It truly is quite ironic that Garlinghouse, who does not champion the “never sell your XRP” mantra, would reprimand Strategy for one bitcoin sale.
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