April 16, 2024

In a recent X post, Ripple’s Chief Technical Officer (CTO) David Schwartz shared his opinion on factors influencing XRP’s price. According to Schwartz, the main factors influencing XRP’s price are not connected to the XRP Ledger ecosystem.

Schwartz made this revelation while addressing concerns from the XRP community on the impact of Ripple’s sales. 

Some members of the XRP community believe that the continuous sales of XRP tokens translate to price suppression for the token. Notably, XRP unlocks 1 billion tokens from Escrow each month and relocks 800 million. So, 200 million tokens are for sale each month. 

Despite the concerns of the community, some individuals, such as pro-crypto attorney Bill Morgan, believe these sales do not influence XRP’s low price level.

Morgan noted that the extent of development on the XRP ledger is an important issue. However, he urged the XRP community to move on from associating the disappointment over XRP’s price with the SEC vs Ripple lawsuit or Escrow unlocks.

Also, in a recent development, documents containing vital emails on Ripple’s past programmed sales caught the attention of community members. However, David Schwartz stated that Ripple stopped programmatic sales in 2020 but continued to sell XRP through Ripple Payments (formerly ODL).

Further, he commended the community for caring about the number of XRP tokens that are sold. However, he believes that how XRP is sold does not matter, and the entire process remains transparent and open to the public view.

Responding to Schwartz’s comments, a crypto researcher, Darkhorse, claimed that the potential return of trading bots and Ripple’s past practices raises questions about their transparency. He noted that even though the monthly schedule for the escrow release of tokens is fixed, has Ripple ever considered giving XRP a break for a month or two?

 Darkhorse further claimed that stopping the sales for just a month could create a new price discovery point. The big question from the researcher is, can the distribution pattern for XRP change? Responding to Darkhorse’s questions, David Schwartz questioned the researcher, asking him if he was suggesting price manipulation. 

However, Darkhorse responded to the inquiry, stating that he did not endorse price manipulation; rather, he hoped that potential adjustments to sales strategies would be considered.

David Schwartz Insists That XRP’s Price Does Not Rely On Ecosystem Factors 

In further response to Darkhorse, David Schwartz stated that XRP has deviated from the original plan of distributing tokens through giveaways. Instead, they explored other venues to unlock the tokens. Even at that, Schwartz insisted that XRP’s price is not primarily reliant on ecosystem developments.

Also, he referenced another post on X that showed a correlation between XRP’s price movement and that of XLM despite having separate ecosystems. Notably, Darkhorse replied to these assertions, stating that he agreed with some of Schwartz’s points. 

He noted that Ripple established the Escrow for more than storage to boost volume and help the price of XRP. However, the volume has decreased, and DEX usage has dropped by 75%.

So, Darkhorse believes that XRP could consider holding back on token sales as a potential price improvement strategy. 

Meanwhile, XRP trades at $0.56 today, with no notable increase in its price.  


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