XRP CTO in a conversation on X made a statement concerning the primary factor that is responsible for the effect on the price of the asset. Schwartz uncovered this while speaking to address the worries of the XRP community. Quite, concerns encompassing the effect of degrading Ripple’s sales have become the overwhelming focus in the community which needed clarity from the Ripple team.
Worries In the XRP Community
Some community members have concluded that the factor that influences the XRP price suppression is the persistent sale of XRP. Nonetheless, others, including pro-crypto lawyer Bill Morgan, have an alternate point of view, stating that the asset’s underperformance isn’t connected to these sales.
As of late, papers containing messages on Ripple’s past pragmatic sales grabbed the attention of the community. The document, which uncovered a discussion between Ripple CTO Brad Garlinghouse’s team and market maker GSR, intensified the community concerns.
Schwartz has explained that Ripple halted pragmatic sales in 2020 yet has kept on selling XRP through ODL (now Ripple Payment). As conversations encompassing these documents persevere, Schwartz as of late mentioned that how much XRP sells ought not to be a reason to worry.
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Darkhorse Call To Stop XRP Sales
Responding to the information, DARKHORSE, the crypto expert who pointed the public’s attention to the document, inquired as to whether Ripple could turn from how it currently sells XRP or stop the sales for a little while to notice the price response from XRP.
The Ripple CTO replied by saying that this would mean intentionally manipulating the price of the asset. As stated by Schwartz, the solicitation from DARKHORSE is like a price control strategy, a move that conflicts with the morals of the market.
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In an ensuing comment, Schwartz affirmed that Ripple has turned from the first intention to distribute its broad XRP holdings. He mentioned that the company looked to shed off its holdings through giveaways, however, this plan didn’t go as expected.
Thus, Ripple changed to another strategy because the firm didn’t wish to keep holding as much XRP as it did for a long time. Ripple has been releasing 1 billion XRP free from escrow every month, except they typically lock back the vast majority of these tokens, holding a part for sales.
The XRP Ecosystem Does Not Affect The AsseT’s Price
The Ripple CTO underlined that the company has no other choice except to keep selling off its XRP holding which is a measure to reduce the amount it currently holds. He further contended that the conviction that the XRP ecosystem drives the price of XRP should be disregarded.
We were originally hoping to get our holdings way down in just a few years mostly using giveaways. That strategy just didn't work. We don't want to be holding lots of XRP for decades, but it's not clear what other options we have.
FWIW, I believe the primary drivers of XRP's…
— David "JoelKatz" Schwartz (@JoelKatz) February 19, 2024
To help his situation, Schwartz referred to a past post concerning the connection between the prices of XRP and XLM. XLM has kept on reflecting XRP’s price notwithstanding its ecosystem recording totally different developments, including the gigantic token burn of 55 billion XLM in November 2019.
Following this burn, XLM failed to record any significant price upsurge. instead, its price moved along with XRP’s price. Schwartz’s contention lines up with the opinion that XRP’s price is directed by more extensive market trends and not explicit development in the XRP ecosystem.