Amidst Concerns, Ripple CTO Addresses XRP Sales and Price Manipulation Allegations
In response to growing concerns within the cryptocurrency community about the price performance of XRP, Ripple’s Chief Technology Officer (CTO), David Schwartz, has taken to social media to clarify the company’s position and actions regarding XRP sales. These discussions have arisen due to allegations of price manipulation against Ripple and how its handling of XRP could impact its market value.
Ripple CTO Emphasizes Transparency in XRP Sales
Schwartz’s initial response aimed to reassure the community that Ripple’s actions regarding XRP sales are deliberate and transparent. He addressed concerns by stating that although Ripple chooses when and how much XRP to sell, these details are visible to everyone. This transparency is especially important given the discontinuation of programmatic sales highlighted in Ripple’s Q1 2023 XRP markets report.
Debate on Halting Sales and Manipulation
The conversation took a deeper turn when a community member proposed temporarily halting sales to aid in price discovery. Schwartz questioned the logic behind this pause, asking if it implied an intention to manipulate the price. He argued that halting sales could itself be seen as manipulation, challenging the community’s perception and expectations.
Factors Influencing XRP Price
Schwartz acknowledged that Ripple initially planned to reduce its holdings through giveaways but had not achieved this goal. He emphasized that external factors have a more significant impact on XRP’s price than Ripple’s specific actions. Schwartz believes that market forces drive the price of XRP, rather than Ripple’s strategy or decisions.
Correlation with Stellar Lumens (XLM)
The discussion also touched upon burning unused escrowed XRP as a means to positively affect its price. Schwartz drew parallels with Stellar Lumens’ burn event, noting that it had no significant impact on its price. When asked about the correlation between XRP and XLM’s prices, Schwartz suggested that this similarity could be attributed to external factors common to both cryptocurrencies.
At present, XRP is trading at $0.5586.
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