David Schwartz, Ripple’s Chief Technology Officer (CTO), took to X (previously Twitter) to interact with the XRP community, diving into the intricacies of XRP’s price movements. This engaging exchange shed light on Ripple’s sales strategies, the impact on XRP, and its connection to broader market trends.
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
Read more about what he had to uncover.
Ripple’s Sales Strategies
Concerns regarding Ripple’s continuous sales impacting XRP’s price took center stage, fueled by recent revelations about past programmatic sales. Schwartz allayed fears, clarifying that programmatic sales ceased in 2020, with Ripple opting for sales through ODL (Ripple Payments).
After these revelations, an anonymous crypto researcher, Darkhorse, urged Ripple to adjust its sales strategies or temporarily halt sales to observe the price reaction. Schwartz emphasized the need for transparency in Ripple’s actions, asserting the unethical nature of deliberate price manipulation.
I agree with some of your points. XRP liquidity hasn’t met expectations. Ripple established the escrow for more than storage listed below in the objectives of creating the Escrow —it aimed to boost volume and price appreciation. However, volume has decreased, with DEX usage down… pic.twitter.com/3FX1hjlQDX
— ĐΛRKHØRSΞ™ (@DarkhorseDNME4) February 19, 2024
Read More: Ripple News: 40.7 Billion XRP Burn Revealed for “Blackholing”; Community Shocked
Ripple’s Evolving Plan
Ripple’s initial plan of distributing XRP through giveaways was revised due to inefficacy. Schwartz revealed that the company released 1 billion XRP from escrow monthly but retained a significant portion for sales, aiming to gradually reduce its XRP holdings over time.
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
Contrary to the belief that ecosystem developments dictate XRP’s price, Schwartz argued that broader market trends play a more substantial role. He highlighted the correlation between XRP and XLM prices, emphasizing similar movements despite different ecosystem developments.
Schwartz discussed the potential worldwide adoption of the XRPL, foreseeing an increase in XRP burned per day alongside elevated transaction volumes. This, he explained, would create a simple supply and demand dynamic over the long term.
This Might Interest You: What to Expect Next in the Ripple vs SEC Lawsuit? Expert Details 10-Year Timeline
Fostering Transparency and Understanding
David Schwartz’s engagement with the XRP community not only addressed concerns about Ripple’s sales practices but also fostered transparency. The exchange provided clarity, attracting a larger user base and unraveling the complexities of XRP’s price dynamics.
Ripple’s CTO is paving the way for a more informed and connected user community.
Was this writing helpful?
No Yes
Qadir AK
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
