What You Should Know About Ripple CTO David Schwartz’s Response to XRP Price Controversies
Ripple’s Chief Technology Officer (CTO), David Schwartz, recently engaged with the XRP community to discuss the factors influencing the price of XRP. He clarified that Ripple’s sales of XRP do not have a significant impact on its price, as it is more heavily influenced by broader market trends. Schwartz emphasized that Ripple is committed to transparency and is working to educate the XRP community about its sales practices.
Concerns were raised about Ripple’s continuous sales affecting the price of XRP, particularly after revelations about past programmatic sales. Schwartz reassured the community that programmatic sales had ceased in 2020, and Ripple now focuses on sales through ODL (Ripple Payments). In response to a suggestion to adjust sales strategies or temporarily halt sales to observe the price reaction, Schwartz stressed the importance of transparency and condemned deliberate price manipulation.
Schwartz revealed that Ripple’s initial plan of distributing XRP through giveaways was ineffective, leading to a revision of their strategy. The company now releases 1 billion XRP from escrow each month but retains a significant portion for sales, with the goal of gradually reducing its XRP holdings over time. Schwartz also highlighted the role of broader market trends in influencing XRP’s price, pointing out the correlation between XRP and XLM prices despite different ecosystem developments.
Discussing the potential worldwide adoption of the XRPL, Schwartz predicted an increase in XRP burned per day and higher transaction volumes, which would create a simple supply and demand dynamic in the long term.
Schwartz’s engagement with the XRP community not only addressed concerns about Ripple’s sales practices but also fostered transparency and understanding. This interaction has attracted a larger user base and provided clarity on the complexities of XRP’s price dynamics, paving the way for a more informed and connected community.