Amid ongoing controversies surrounding Ripple's pre-IPO shares and the Linqto platform, Ripple CEO Brad Garlinghouse has emphasized the fundamental distinction between XRP and Ripple stock.
This clarification addresses investor concerns following regulatory investigations into Linqto's sale of purported "Ripple stock representative units." Garlinghouse reiterated that Ripple has no business relationship with Linqto and has never directly issued shares to the platform.
In a recent tweet, Garlinghouse explicitly stated that XRP and Ripple equity are fundamentally different. He clarified that his comments solely pertain to Ripple equity, not the XRP token.
Ripple Confirms Linqto Holds 4.7 Million Shares
Garlinghouse revealed that Linqto holds 4.7 million Ripple shares, acquired through secondary markets from other shareholders. He cited this figure to reassure investors that Ripple is aware of Linqto's current holdings.
Garlinghouse further clarified that Ripple is not involved in Linqto's product design or investor management processes. He acknowledged having limited insight into Linqto's handling of Ripple share sales and emphasized that Linqto cannot guarantee Ripple's corporate actions.
Essentially, Garlinghouse sought to distance Ripple from any potential legal or financial repercussions related to Linqto’s operations, which are currently under investigation by U.S. authorities.
Okay, seems my post has raised a few questions—first, XRP and Ripple stock are entirely different things. This article only discusses Ripple stock. Linqto is an independent company that purchased Ripple shares from some of our existing shareholders. It should…
— Brad Garlinghouse (@bgarlinghouse) July 2, 2025
Is This Good News for Linqto Unit Holders?
Despite the controversy, Garlinghouse noted that Ripple stock has significantly appreciated over time. Investors who purchased Linqto units may still see substantial returns—provided Linqto fulfills its transactional obligations.
For context, Ripple recently launched a $700 million stock buyback program** at **$175 per share, representing a 135% premium over recent private market prices. The offer, open from June 10 to July 9 via Nasdaq Private Market, applies to vested shareholders and option holders. This follows Ripple’s $125/share buyback in January.
👉 Discover how Ripple’s buyback strategy impacts investors
Calls for Refunds
Amid Linqto’s controversy, some users have demanded refunds. However, XRP-supporting attorney John Deaton opposes refunding investments at original costs, arguing it would unfairly penalize the platform.
Deaton, who invested $30,000 in Circle** via Linqto (now worth **$157,000), stated that refunds would allow Linqto to profit at investors' expense. He deemed this unfair, especially given Ripple’s $175/share buyback price**, while his average cost was **$33/share.
Re-evaluating Linqto, I think it depends on the investment. If people can recover their Polysign purchases, that’s a steal because Polysign is worthless.
But what about Ripple and Circle?
I invested $30K in Circle via @linqtoinc. Today, that investment is worth… https://t.co/wnXQlyBa40
— John E. Deaton (@JohnEDeaton1) June 30, 2025
Notably, Linqto froze user accounts and halted operations in February, sparking backlash from over 14,000 users.
As scrutiny intensifies, Ripple is safeguarding its reputation by clearly distinguishing its operations from third-party platforms offering access to its pre-IPO equity.
👉 Explore Ripple’s pre-IPO investment landscape
FAQ Section
Q: Is XRP the same as Ripple stock?
A: No. XRP is a cryptocurrency used for transactions, while Ripple stock represents equity in the company.
Q: How did Linqto acquire Ripple shares?
A: Linqto purchased 4.7 million shares via secondary markets, not directly from Ripple.
Q: Can Linqto investors still profit from Ripple stock?
A: Potentially, if Linqto honors transactions, given Ripple’s rising share value.
Q: Why is Linqto under investigation?
A: U.S. authorities are probing its sale of Ripple stock units without clear regulatory compliance.
Q: What’s Ripple’s current stock buyback price?
A: $175 per share, a 135% premium over recent private market rates.
Q: Did Ripple endorse Linqto’s offerings?
A: No. Ripple confirmed no partnership with Linqto and disclaims responsibility for its operations.