David Schwartz, Ripple’s Chief Technology Officer (CTO) recently explained why the company is the biggest seller of XRP, its native digital asset. The CTO’s response follows a recent movement of XRP from Ripple, as previously reported by Crypto-Vanguard.
Explanation from Ripple’s CTO on XRP Sales
In a post on social media X, Schwartz said the only realistic alternative to selling XRP is to hold it indefinitely as Ripple has the most XRP. The statement implies that there aren’t many options left for Ripple to explore besides selling its XRP holdings. Besides, the company needs funds to operate, thus, selling XRP is the main way to access cash.
Ripple’s XRP holdings are segmented into two categories as disclosed in Ripple’s Q1 2024 report. While the first category represents XRP held in wallet addresses, the second category is those locked in on-ledger escrow accounts.
Over the next 42 months, these escrow accounts are set to release XRP monthly. According to this schedule, Ripple has no access to escrowed XRP until it is released. Therefore, the majority of XRP released each month is returned to the escrow account. Through this approach, Ripple aims to balance its needs while maintaining stability in the price of XRP.
Meanwhile, Ripple held 4.8 billion XRP as of March 31 this year, with an extra 40.1 billion XRP in on-ledger escrow accounts.
XRP’s Price Outlook
As of the time of writing, XRP is trading at $0.5141, down by 1.27% in the past day, with the market cap standing at $28.4 billion. Since May 2023, XRP has been trading in an upward corridor, with $0.80 now acting as the upper resistance level.
Despite this resistance, XRP is now close to its support level. XRP has remained at this level in the past month, after falling by 22% in mid-April. In a bullish forecast, analysts claim XRP’s rise to $10,000 is realistic and inevitable.
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