As Ripple faces more scrutiny for its continuous XRP sales, Chief Technology Officer David Schwartz has offered insights into the company’s strategic approach, allaying cryptocurrency community fears.
Prominent crypto influencer Mr Huber brought attention to Ripple’s XRP sales, revealing that the firm’s public distribution in December 2023 was nearly three times the average monthly deals, totalling 238 million tokens or $142 million worth of XRP, selling at an average price of $0.6/XRP.
The community expressed worries about the potential impact of ongoing XRP sales on the coin’s value and questioned whether Ripple’s core business now revolves around continuous XRP selling.
Ripple CTO Responds
In response to widespread speculation, Ripple CTO David Schwartz addressed the business’s position, indicating that the company has two options: retain the present level of XRP holdings or actively reduce the amount kept.
He emphasized that these are the only viable options, reaffirming Ripple’s initial strategy to decrease XRP holdings swiftly.
However, famous crypto author Panos Mekra suggested an alternative approach, proposing that Ripple donate the majority of XRP to the XRP Ledger Foundation (XRPLF). This would involve XRPLF overseeing the distribution of XRP tokens through community incentives, marketing efforts, and educational initiatives related to XRPL.
According to Ripple’s API statistics, the company presently has 40.7 billion XRP in escrow as of December 31, 2023. The ongoing discussions highlight the delicate balance Ripple maintains as it adapts to market dynamics and addresses community concerns. Schwartz’s insights provide valuable context to Ripple’s commitment to strategically managing its XRP holdings.
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