Understanding Ripple’s Sales Techniques on XRP
When you compare Bitcoin and Ether’s recent performance to XRP, it is clear that XRP has not experienced the same level of success. This discrepancy has led some to believe that Ripple’s sales of its XRP have contributed to XRP’s underperformance in the market.
Ripple’s Programmatic Sales
David Schwartz, Ripple’s Chief Technological Officer, addressed concerns about Ripple’s programmatic sales of XRP, stating that those sales ceased in 2020. According to the Q1 2023 XRP markets report by the firm, only Ripple’s ODL partners are currently buying XRP from Ripple for liquidity on cross-border payments. Schwartz clarified that Ripple only sells XRP to ODL partners and not through programmatic sales, emphasizing the difference between these two methods of selling. He also revealed that Ripple sometimes sells more XRP to ODL partners than it purchases through the open market, resulting in a decrease in the company’s balance of XRPs. These clarifications aim to provide transparency about Ripple’s approach to selling XRP.
Addressing Community Concerns
In response to the poor performance of XRP and questions about Ripple’s sales approaches, David Schwartz has been striving to communicate with and provide clarity to the cryptocurrency community. However, there is still a need for greater transparency and communication from Ripple and other crypto entities to effectively address community concerns.