Ripple CTO David Schwartz has recently addressed and refuted claims regarding the company’s alleged excessive sales of XRP in December 2023. These allegations suggest that Ripple sold 237 million XRP, a significant increase from their usual monthly sales, and have been a topic of intense speculation within the cryptocurrency community. Schwartz’s intervention aims to clarify the situation and dispel any misinformation circulating in the market.
Clarifying Ripple’s XRP movements
In a response to The Good Morning Crypto Podcast’s official Twitter account, Schwartz challenged the accuracy of the data presented by on-chain sleuth Mr. Huber. Huber’s analysis, shared by the podcast, claimed that Ripple’s net sales of XRP in December 2023 were notably higher than in previous months. These figures were supposedly derived from Ripple’s API data, suggesting sales of 48.1 million XRP on December 10, 59.4 million on December 17, 60.1 million on December 24, and 68.8 million on January 7, 2024.
David Schwartz questioned the source of this data, asserting that the upcoming Ripple XRP market report for Q4 2023 would reveal no surprises. According to him, the sales rate for the last quarter would align with the patterns observed in past quarters, suggesting consistency in Ripple’s approach to XRP sales.
David Schwartz challenges XRP price suppression claims
The Ripple CTO addressed the concerns about XRP’s price performance. A segment of the XRP community, dismayed by the cryptocurrency’s lackluster price growth, speculated that excessive selling by Ripple or other entities could suppress its value. To counter these theories, Schwartz presented charts comparing XRP’s price movements with those of Stellar (XLM) and Cardano (ADA) over the past month. These comparisons were intended to demonstrate that XRP’s market behavior is not an anomaly but in line with similar digital assets.
David Schwartz’s effort to debunk these theories comes when the cryptocurrency market is particularly sensitive to news about asset movements and sales by major stakeholders. His proactive approach to providing clarity and data-backed arguments aims to restore confidence among investors and the broader XRP community.
The Ripple effect on XRP’s market performance
The discussion surrounding Ripple’s handling of XRP sales is crucial, as it directly impacts investor sentiment and market dynamics. Ripple routinely releases 1 billion XRP from escrow each month, typically relocking 800 million and allocating the remaining 200 million for sales. This mechanism is designed to effectively manage the supply of XRP in the market. However, the complexity and opacity of blockchain transactions sometimes make it challenging to track these movements accurately.
The Good Morning Crypto Podcast’s Twitter poll reflected the community’s concerns, with 68% of 1,964 respondents believing that Ripple’s sales activities were suppressing XRP’s price. This sentiment underscores the importance of transparency and accurate information dissemination in the volatile cryptocurrency market.