Bill Morgan: Ripple is Merely Stabilizing XRP’s Inflation, Not Engaging in Massive Dumping

Bill Morgan, a legal expert with a deep interest in XRP, has come forward to provide a detailed explanation of Ripple’s $238 million XRP sales in December 2023. Morgan’s insights shed light on Ripple’s actions and their impact.

In December, Ripple made headlines by selling 238 million XRP tokens, worth $142 million. This marked a significant increase from their usual monthly sales and sparked discussions within the cryptocurrency community. Morgan challenges the notion that Ripple is “dumping” XRP by presenting evidence of the inflation rate tied to the circulating supply resulting from the release and sale of XRP from escrow, which is calculated at 7.86%.

Morgan argues that while this inflation rate is relatively high, it does not adequately explain why XRP’s price would be significantly affected. He emphasizes that the narrative of Ripple heavily dumping XRP is false. He also references the SEC’s lawsuit against Ripple and highlights that Ripple’s direct contribution to the total XRP market volume is less than half of 1%.

Furthermore, Morgan discusses the SEC’s view that Ripple’s actions, such as placing XRP in escrow and repurchasing some, aim to stabilize XRP’s price. He distinguishes this approach from the exaggerated claims of Ripple “dumping” XRP. Morgan suggests that Ripple’s strategy of buying back XRP and placing some in escrow is a well-considered approach, given the fixed supply of XRP.

As the cryptocurrency community seeks to understand Ripple’s XRP sales and their implications, Morgan’s analysis provides valuable clarity. By challenging existing narratives and promoting informed discussion, he contributes to a more nuanced understanding of Ripple’s activities in the cryptocurrency market.