As a long-term crypto investor with experience in following Ripple’s market movements, I find the ongoing debate surrounding Ripple’s extensive XRP sales intriguing. The explanation provided by David Schwartz, Ripple’s CTO, sheds some light on the company’s rationale behind these sales.
As a cryptocurrency market analyst, I’ve noticed that Ripple, a prominent player in our industry, has been subject to scrutiny regarding their large-scale XRP transactions. To shed some light on this matter, Rippe’s Chief Technology Officer David Schwartz has shared the rationale behind these sales from the company’s perspective.
Schwartz highlighted that Ripple is the largest possessor of XRP, implying that if you don’t want to sell, your only viable option is to keep holding it indefinitely.
As a researcher examining Ripple’s Q1, 2024 report, I came across valuable insights regarding their XRP holdings. The company categorizes these holdings into two distinct groups: XRP that can be readily accessed from Ripple’s wallets and XRP that is securely stored in on-ledger escrow accounts.
Over the course of 42 months, these escrow accounts will dispense XRP in monthly installments. Ripple lacks control over the escrowed XRP until it’s distributed according to this timeline. The majority of the XRP disbursed each month is then reinvested back into the escrow account, demonstrating a deliberate and regulated release approach.
By March 31, 2024, Ripple possessed a stockpile of 4.8 billion units of XRP, while an extra 40.1 billion XRP were secured on the ledger through escrow.
XRP price outlook
As a crypto investor, I’m observing that XRP is presently priced at roughly $0.50 per token on the market. Upon examining its price chart, I notice that XRP has been trending upwards since May 2023. The resistance level, which acts as a dynamic ceiling, currently stands at around $0.80 per token. However, the token is presently hovering near its support level, where it has stayed for approximately a month after undergoing a significant decline of nearly 22% in mid-April.
It’s open to debate if XRP can bounce back from its latest slump, and a significant factor to consider is the ongoing impact of Ripple‘s continuous token offerings during this recovery phase.
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2024-05-20 12:52