Ripple’s XRP sales program under scrutiny amid allegations of price suppression


  • Ripple’s CTO explained why they used trading bots from GSR for XRP sales amid scrutiny from the SEC lawsuit.
  • Schwartz believes outsourcing sales reduces risks of insider trading accusations and regulatory backlash.
  • Despite explanations, the XRP community remains skeptical, fueling debates over Ripple’s sales practices and their impact on XRP’s price.

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.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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James Kinoti

A crypto enthusiast, James finds pleasure in sharing knowledge on fintech, cryptocurrency as well as blockchain and frontier technologies. The latest innovations in the crypto industry, crypto gaming, AI, blockchain technology, and other technologies are his preoccupation. His mission: be on track with transformative applications in various industries.

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