Ripple CTO Addresses Concerns
With Ripple facing increased scrutiny for its ongoing XRP sales, the company’s Chief Technology Officer, David Schwartz, has provided some key insights into the company’s strategic approach, aiming to reassure the cryptocurrency community.
XRP Sales Overview
A well-known crypto influencer, Mr. Huber, recently brought attention to Ripple’s XRP sales, highlighting that the company’s public distribution in December 2023 was nearly three times the average monthly deals. This totaled 238 million tokens, equivalent to $142 million worth of XRP, sold at an average price of $0.6 per XRP. This raised concerns within the community about the potential impact of these ongoing sales on the coin’s value and raised questions about whether Ripple’s core business now revolves around continuous XRP selling.
Ripple’s Strategic Options
In response to the widespread speculation, Ripple CTO David Schwartz addressed the business’s position, indicating that the company has two options: retain the current 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, well-known 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.
Hot Take: Ripple’s Ongoing Strategy
As Ripple faces increasing pressure regarding its XRP sales, the company’s CTO, David Schwartz, has shed light on the strategic approach Ripple is taking to address concerns within the cryptocurrency community. This ongoing dialogue demonstrates the importance of maintaining a balance between market dynamics and community interests as Ripple manages its XRP holdings.
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