Insights from Ripple’s CTO: Unraveling the Enigma of XRP Price Underperformance
Ripple’s Sales Approach and XRP’s Performance: Insights from David Schwartz
The Ripple community has been questioning Ripple’s sales techniques due to the underperformance of XRP. To address these concerns, Ripple’s Chief Technological Officer, David Schwartz, has stepped forward to clarify the company’s approach to selling XRP. In this article, we will delve into Schwartz’s clarifications and examine the community’s reactions, shedding light on how Ripple sells its tokens and how this impacts its market performance.
Despite the recent surge in the prices of Bitcoin and Ether, XRP has struggled to rise above $0.60, causing unease among investors. Many community members attribute this lackluster performance to Ripple’s selling off of XRP, sparking a discussion on the company’s sales strategy.
Schwartz aimed to address the questions that arose when documents surfaced, revealing Ripple’s involvement in programmatic sales of XRP. He made it clear that these programmatic sales ceased in 2020, as stated in Ripple’s Q1 2023 XRP markets report. The report discloses that currently, only Ripple Payments (ODL) partners are purchasing XRP from Ripple for cross-border payments liquidity.
Schwartz emphasized that Ripple exclusively sells XRP to ODL partners and not through programmatic sales. He also highlighted the distinction between selling via programmatic methods and selling to ODL partners, as the company continues to buy more XRP from the open market.
According to Schwartz, there are instances where Ripple sells more XRP to ODL partners than it acquires from the open market, resulting in a decrease in the company’s XRP balance. These revelations provide insight into Ripple’s business transactions concerning XRP.
In light of XRP’s poor performance and sales approaches, David Schwartz, Ripple’s CTO, has been actively addressing the concerns of the community. However, there is a pressing need for greater transparency and communication from Ripple and other cryptocurrency entities to effectively address community apprehensions.
Tags: Ripple (XRP)