Ripple’s Chief Technology Officer, David Schwartz, has stirred the pot within the XRP community, asserting that external factors, rather than the XRPL ecosystem itself, drive the cryptocurrency’s price. This stance comes amidst concerns about the impact of Ripple’s XRP sales on the asset’s value.
Community Concerns and Questions:
Some community members believe Ripple’s ongoing XRP sales suppress the price. Others, like attorney Bill Morgan, argue that underperformance isn’t directly linked to these sales. Recent leaked emails between Ripple CEO Brad Garlinghouse’s team and market maker GSR have reignited the debate.
Schwartz clarifies that programmatic sales stopped in 2020, but XRP sales continue through Ripple Payments (ODL). He downplays concerns about the volume sold, stating it shouldn’t be alarming.
Manipulative Request? Crypto researcher DARKHORSE, who unearthed the emails, requested Ripple halt sales or pivot their approach for a month to observe the price reaction. Schwartz deems this akin to price manipulation, which he finds unethical.
Schwartz admits Ripple pivoted from its initial giveaway plan, which proved ineffective. They switched to selling portions of the monthly 1 billion XRP released from escrow, typically locking back most tokens.
Price Not Ecosystem-Driven?
Schwartz argues against the belief that ecosystem developments directly drive XRP price. He cites a past analysis showing a correlation between XRP and XLM prices, despite XLM’s distinct ecosystem, including a massive 55 billion XLM token burn in 2019 that had little impact on its price. This suggests XRP’s price might be more influenced by broader market forces.
Also Read: XRP Ready to Rocket? Influencers Predict 35% Surge to $0.76, Eyes on $1 by May! (Analysis)
Unanswered Questions:
Schwartz’s statement raises questions:
- Will Ripple’s sales strategy continue?
- How much does the market influence XRP compared to ecosystem factors?
- Can XRP decouple from broader market trends?
Schwartz’s comments will likely fuel further discussion within the XRP community. While some may find his arguments convincing, others might seek further evidence to solidify their understanding of the factors driving XRP’s price. The debate around Ripple’s sales and their impact on the XRP ecosystem is far from over.
Ripple (XRP) Market Outlook
As of February 20, 2024, the global cryptocurrency market cap sits at $30.76 billion, experiencing a slight uptick of 0.92% in the past 24 hours. XRP, currently ranked 6th by market cap, reflects this trend with a price of $0.5637, marking a 1.05% increase over the last day. Despite fluctuations within its $0.5555-$0.5718 price range today, XRP maintains its position among the leading cryptocurrencies.
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