David Schwartz, Ripple’s Chief Technology Officer, Elaborates on the Firm’s XRP Investment Approach

As Ripple faces increased scrutiny over its continuous sales of XRP, Chief Technology Officer David Schwartz has provided valuable insights into the company’s strategic approach, alleviating concerns within the cryptocurrency community.

Well-known crypto influencer Mr. Huber drew attention to Ripple’s XRP sales, revealing that in December 2023, the firm’s public distribution was nearly three times the average monthly sales. This amounted to 238 million tokens or $142 million worth of XRP, sold at an average price of $0.6 per XRP.

This raised concerns within the community about the potential impact of ongoing XRP sales on the value of the coin, leading to questions about whether Ripple’s core business now revolves around continuous selling of XRP.

In response to the widespread speculation, Ripple CTO David Schwartz addressed the company’s position, stating that they have two options: either maintain the current level of XRP holdings or actively reduce the amount held. He emphasized that these are the only viable options, reaffirming Ripple’s initial strategy to rapidly decrease its XRP holdings.

However, well-known crypto author Panos Mekra proposed an alternative approach, suggesting that Ripple donate the majority of its XRP to the XRP Ledger Foundation (XRPLF). Under this proposal, the XRPLF would oversee the distribution of XRP tokens through community incentives, marketing efforts, and educational initiatives related to XRPL.

According to Ripple’s API statistics, the company currently holds 40.7 billion XRP in escrow as of December 31, 2023. These ongoing discussions highlight the delicate balance that Ripple must maintain as it adapts to market dynamics and addresses community concerns. Schwartz’s insights provide valuable context to Ripple’s commitment to strategically managing its XRP holdings.

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Ripple (XRP)