David Schwartz Reveals the Truth: Ripple’s Influence on XRP Price!
David Schwartz, the Chief Technology Officer (CTO) of Ripple, recently interacted with the XRP community on X (previously Twitter) to address concerns about the factors influencing XRP’s price dynamics. In addition to discussing Ripple’s sales strategies and their impact on XRP’s performance, Schwartz provided insights into the company’s approach and its connection to broader market trends.
Some users have expressed concerns about the potential impact of Ripple’s continuous sales on XRP’s price. Recent revelations about past programmatic sales in leaked emails have added fuel to these concerns. Schwartz clarified that while programmatic sales ceased in 2020, Ripple continued to sell XRP through ODL (Ripple Payments).
Following these revelations, an anonymous crypto researcher named Darkhorse requested that Ripple consider adjusting its sales strategies or temporarily halt sales to observe the price reaction. Doing so would prevent deliberate manipulation of the asset’s price and ensure transparency in Ripple’s actions, according to Schwartz.
Schwartz also clarified that Ripple changed its initial plan to distribute XRP holdings through giveaways because it was not yielding the expected outcomes. Instead, the company now releases 1 billion XRP from escrow monthly but retains a significant portion for sales. The goal is to gradually reduce Ripple’s XRP holdings over time.
Addressing the belief that ecosystem developments primarily dictate XRP’s price, Schwartz argued against this notion. He pointed to the correlation between XRP and XLM prices, noting that despite different ecosystem developments, the two cryptocurrencies exhibit similar price movements. This suggests that XRP’s price is influenced more by broader market trends than specific developments within the XRP ecosystem.
In conclusion, the potential worldwide adoption of the XRPL would increase the amount of XRP burned per day as transaction volume significantly increases. This would create a simple case of supply and demand that takes effect over a long-term duration. By engaging with the XRP community, Ripple’s CTO, David Schwartz, is promoting transparency between users and the firm. Answering questions about Ripple’s sales practices and their impact on XRP’s market performance will attract a larger user base and enhance understanding of the complexities of XRP’s price dynamics.