Ripple’s CTO David Schwartz Sheds Light on XRP Sales Strategy
Major blockchain company Ripple has faced multiple criticisms over its increasing sales of the XRP token. On May 19, Ripple’s Chief Technology Officer (CTO), David Schwartz, explained why the company was selling its XRP holdings.
Schwartz’s comments were in response to a thread that criticized Ripple’s large XRP holdings and sales strategy.
Can you explain why @Ripple are the biggest sellers of xrp please?
— Steve (@Srwtatty) May 19, 2024
As detailed in its Q1 2024 report, Ripple’s XRP holdings are divided into two main categories: liquid and available XRP in Ripple’s wallets and XRP locked in escrow accounts set for controlled release over 42 months.
As of March 31, 2024, Ripple held 4.8 billion XRP tokens directly, while another 40.1 billion XRP were locked in escrow.
A portion of escrowed XRP is released each month, though most are subsequently returned to reset the escrow clock.
Schwartz portrayed the sales as Ripple’s only viable option for accessing liquidity from its XRP holdings besides letting the tokens sit indefinitely. The company has not indicated plans to halt or dramatically ramp up the sales.
In response to Schwartz’s revelations about Ripple’s XRP sales, an anonymous crypto researcher known as Darkhorse urged the company to reconsider its strategies. One suggestion was temporarily halting sales to gauge the price impact.
I agree with some of your points. XRP liquidity hasn't met expectations. Ripple established the escrow for more than storage listed below in the objectives of creating the Escrow —it aimed to boost volume and price appreciation. However, volume has decreased, with DEX usage down… pic.twitter.com/3FX1hjlQDX
— ĐΛRKHØRSΞ™ (@DarkhorseDNME4) February 19, 2024
Schwartz stressed the importance of
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