Bill Morgan Provides Clarity on Ripple’s $238 Million XRP Sales: Dispelling the Myth of Dumping
Renowned legal expert and avid proponent of XRP, Bill Morgan, has stepped forward to address the concerns surrounding Ripple’s substantial $238 million XRP sales in December 2023. In his comprehensive response, Morgan sheds light on crucial aspects related to Ripple’s XRP sales and their potential impact on the market, aiming to dispel any misinformation that may be circulating.
In December 2023, Ripple’s net sales of XRP reached an impressive 238 million units, equivalent to a staggering $142 million. This figure is three times higher than the company’s average monthly sales, as previously reported by Coinpedia News. Naturally, such significant sales have sparked speculation within the cryptocurrency community regarding Ripple’s intentions.
Morgan begins by challenging what he refers to as a “false narrative” that suggests Ripple is indiscriminately offloading a considerable amount of XRP. To support his stance, he presents compelling evidence, referring to the inflation rate associated with the circulating supply resulting from the release and sale of XRP from escrow, which stands at 7.86%.
Expanding on this point, Morgan emphasizes that while this inflation rate may be relatively high, it does not convincingly explain why the price of XRP would experience significant negative effects.
Drawing upon insights from the ongoing legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple, Morgan offers valuable observations. He highlights a surprising fact revealed during the lawsuit: Ripple’s contribution to the total XRP volume in the market was less than half a percent.
Furthermore, Morgan underscores the SEC’s argument that Ripple utilized various methods, such as placing XRP in escrow and repurchasing some of it, to help maintain the stability of XRP’s price. He asserts that this differs greatly from the sensationalized claim that Ripple is indiscriminately dumping vast amounts of XRP.
Addressing the criticism directed at Ripple for both holding a significant amount of XRP and selling it, Morgan points out the inherent contradiction in this argument. He explains that since there is a fixed amount of XRP that will not increase, Ripple’s strategic actions, such as repurchasing and placing some in escrow, reflect a carefully planned approach rather than a reckless dumping of assets.
As the cryptocurrency community grapples with understanding the intricacies of XRP sales and their consequences, Morgan’s insights challenge prevailing notions and pave the way for a more informed and enlightened discourse.
Tags:
Ripple (XRP)