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Selling XRP Isn’t a Dump! Ripple CTO Explains Token Strategy

Published 05/21/2024, 03:50 PM
Updated 05/21/2024, 04:15 PM
Selling XRP Isn’t a Dump! Ripple CTO Explains Token Strategy
XRP/USD
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  • Ripple CTO clarifies XRP sales as liquidity strategy
  • Large holdings managed through sales & locked escrow
  • As of March 31, Ripple holds 40.1 billion locked tokens in the escrow account.

In a recent online discussion on X, Ripple’s CTO, David Schwartz, addressed concerns regarding the company’s large holdings of XRP and its ongoing sales of the cryptocurrency.

Schwartz clarified that Ripple’s strategy of selling XRP is a liquidity management tactic. As the largest holder of XRP, Ripple holds its tokens in two categories, according to its Q1 Report: immediately accessible XRP and escrowed XRP. While a significant portion of XRP is locked in escrow accounts with a 42-month release schedule, Ripple cannot access these tokens during this period. Additionally, most of the XRP released monthly from escrow are also re-locked.

Balancing Liquidity with Locked XRP

Through his online post, Schwartz explained why Ripple is the “biggest seller of XRP,” Schwartz state…

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