David Schwartz, the Chief Technology Officer (CTO) of Ripple engaged with the XRP community on X (previously Twitter), addressing concerns regarding the factors influencing XRP’s price dynamics. Along with the discussions about Ripple’s sales strategies and their impact on XRP’s performance, Schwartz provided insights into the company’s approach and connection to broader market trends.
User’s concerns around Ripple’s sales
concerns about the potential impact of Ripple’s continuous sales on XRP’s price have been expressed. Recent revelations about past programmatic sales in documents containing emails added fuel to the community’s apprehensions. Schwartz clarified that while programmatic sales ceased in 2020, Ripple continued selling XRP through ODL (Ripple Payments).
Following the revelations, an anonymous crypto researcher, Darkhorse requested Ripple to consider adjusting its sales strategies or temporarily halting sales to observe the price reaction. If that was done, it would be unethical to manipulate the asset’s price deliberately. There should be transparency in Ripple’s action the CTO further told.
Ripple’s plan to distribute XRP through giveaways goes down
Schwartz clarified that Ripple altered its initial plan to distribute XRP holdings through giveaways because it was not working out well and not giving expected outcomes. The company released 1 billion XRP from escrow monthly but locked back a significant portion retaining some for sales. He explained that Ripple sought to reduce its XRP holdings over time.
XRP ecosystems have no role in XRP’s price
Addressing the belief that ecosystem developments primarily dictate XRP’s price, Schwartz argued against this notion. He pointed to the correlation between XRP and XLM prices, noting that despite different ecosystem developments, the two cryptocurrencies exhibited similar price movements. His stance supports the idea that XRP’s price is influenced more by broader market trends than specific developments within the XRP ecosystem.
Conclusion:
The potential worldwide adoption of the XRPL would increase the amount of XRP burned per day as transaction volume would also significantly increase. It would be a simple case of supply and demand that ultimately comes into effect over a long-term duration.
But as Ripple’s CTO, David Schwartz engages with the XRP community it is paving transparency between users and the firm. Questions have been answered on Ripple’s sales practices and their impact on XRP’s market performance. This clearance will attract a larger user base and will solve the understanding of the complexities of XRP’s price dynamics.
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Qadir AK
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
