Recently, the cryptocurrency community has been caught up in intense speculation surrounding Ripple, the giant behind the popular cryptocurrency XRP. The discussions were fueled by cryptocurrency influencer Mr. Huber, who pointed to Ripple’s significant net sales of XRP, highlighting: “There you have it: Ripple’s net sales of XRP reached nearly 238 million XRP in December. It’s US$142 million. That’s three times the average monthly sales.”
Speculation gained momentum when Huber hinted at the possibility of a large buyback of XRP by Ripple, noting: “We can assume that Ripple will do a large buyback soon, otherwise I would be worried. Because there has never been a period longer than 8 to 10 weeks without a single net repurchase.” The investment community was on alert, with many questioning the company’s next steps.
Faced with this wave of speculation, David Schwartz, Ripple’s CTO, intervened to clarify the company’s position. He categorically stated: “Ripple has two options. We can continue to hold as much XRP as we have or we can reduce the amount of XRP we have. There really is no third option. Ripple’s original plan was to reduce the amount of XRP we hold as quickly as possible.”
When asked about the possibility of burning XRP in Ripple escrow accounts, Schwartz was blunt: “I can’t think of any sequence of events that would lead to that happening. And I don’t think that would do much good.” This statement dismantled the hypothesis of a token burning strategy to manipulate the market.
Schwartz also addressed the idea that a reduction in the supply of XRP could impact its market value and price. He refuted this notion with an example from the past: “In 2018, many people argued that a reduction in supply could not reduce market value and therefore the price had to increase significantly. Stellar’s burning proved this to be nonsense. I wouldn’t assume the economy works a certain way without really thinking about it first.”
This explanation from Ripple’s CTO brought clarity to the market, dispelling rumors and reaffirming the company’s strategy in relation to XRP. At the time of publication, the price of XRP was listed at US$0.5799, up 6% in the last 24 hours.
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