Amidst ongoing scrutiny stemming from the Ripple vs. SEC lawsuit, Ripple‘s Chief Technology Officer, David Schwartz, recently addressed concerns regarding the company’s utilization of trading bots from GSR for its XRP sales program.
The revelation follows the emergence of documents from the lawsuit shedding light on Ripple’s programmatic sales practices, particularly an email exchange between market maker GSR and Ripple’s team.
The rationale behind the utilization of trading Bots
In response to heightened scrutiny, David Schwartz provided insight into Ripple’s decision to employ trading bots from GSR for its XRP sales program. Schwartz clarified that while he lacked privileged insight into the specific email discourse with GSR, Ripple’s choice to delegate sales to external entities was strategic.
He speculated that this move aimed to mitigate accusations of insider trading and price manipulation.
Schwartz emphasized that by entrusting entities like GSR with sales, Ripple sought to ensure compliance and avoid direct involvement in the market, thereby reducing the risk of regulatory repercussions.
He pointed out the absence of specific allegations of price manipulation in the SEC charges against Ripple, suggesting legitimacy in their sales practices.
The response fails to appease the XRP community
Despite Schwartz’s efforts to offer clarifications, members of the XRP community remain unconvinced. The debate persists, with continued scrutiny of Ripple’s broader endeavors to bolster XRP’s price. The community’s skepticism highlights the need for transparency and accountability in Ripple’s sales practices.
Notably, shortly after halting XRP sales through GSR’s trading bots, XRP surged significantly to its all-time high. This has fueled speculation among community members that the preceding sales had suppressed the asset’s price. The speculation underscores the delicate balance between market dynamics and the influence of external factors on XRP’s valuation.
