Ripple’s Chief Technology Officer (CTO) David Schwartz engaged Together with the XRP community on X (formerly Twitter) we address concerns about factors affecting XRP’s price dynamics. Along with discussing Ripple’s sales strategy and its impact on XRP’s performance, Schwartz provided insight into the company’s approach and its connection to broader market trends.
User concerns about Ripple’s sale
Concerns have been expressed about the potential impact of Ripple’s continued selling on the price of XRP. Recent revelations about past programmatic sales in documents containing emails have added to community concerns. Schwartz said that although programmatic selling was discontinued in 2020, Ripple continued to sell XRP through Ripple Payments (ODL).
Following the revelations, anonymous cryptocurrency researcher Darkhorse emerged. requested Ripple is considering adjusting its sales strategy or temporarily suspending sales to observe price reaction. If they did, it would be unethical to intentionally manipulate asset prices. The CTO added that there must be transparency in Ripple’s actions.
Ripple’s plan to distribute XRP through giveaways has collapsed.
schwartz clarify The reason why Ripple changed its initial plan to distribute XRP holdings through giveaways was because it did not work well and did not yield the expected results. The company minted 1 billion XRP out of escrow every month, but left a significant portion aside for sale. He explained that Ripple has tried to reduce its XRP holdings over time.
The XRP ecosystem plays no role in the price of XRP.
Schwartz opposed this notion, believing that ecosystem development primarily determines the price of XRP. that pointed We analyzed the correlation between XRP and XLM prices, noting that both cryptocurrencies have shown similar price movements despite their different ecosystem developments. His position supports the idea that XRP price is influenced more by broader market trends than by specific developments within the XRP ecosystem.
conclusion:
If XRPL is likely to be adopted globally, trading volume will also increase significantly, thus increasing the amount of XRP consumed per day. This may be a simple case of supply and demand with long-term implications.
However, David Schwartz, Ripple’s CTO, is engaging with the XRP community to ensure transparency between users and the company. Questions about Ripple’s selling practices and their impact on XRP’s market performance have been answered. This cleanup will attract a larger user base and address the understanding of the complexities of XRP price dynamics.