- Ripple holds the most XRP, and selling is a way to manage its holdings.
- Controlled releases from escrow accounts help maintain XRP price stability.
Ripple, a leading blockchain company focused on cross-border payments, has been under scrutiny for its sales of coin, the native cryptocurrency of the XRP Ledger. David Schwartz, Ripple’s Chief Technology Officer, recently addressed these concerns, shedding light on the company’s strategy for managing its vast coin holdings.
Schwartz acknowledges that Ripple holds the largest amount of coins. He explains that simply holding onto all the coins indefinitely wouldn’t be practical. Therefore, measured sales are a way to manage this large holding.
It’s important to note that not all of Ripple’s coins are readily available for sale. Ripple’s Q1 2024 report coin details how these holdings are divided. A significant portion is locked into ledger escrow accounts, with controlled monthly releases scheduled over the next several years. This strategy ensures a steady flow of XRP into the market while preventing a sudden influx that could destabilize the price.
Currently, the coin is trading at around $0.50 per token. While it has experienced a recent price dip, coin has been on an upward trend since May 2023. Analysts point to a potential resistance level near $0.80 and a support level at its current price point. The controlled release of coins from escrow accounts could play a role in maintaining this price stability.
By combining strategic sales with a controlled release from escrow, Ripple aims to manage its XRP holdings effectively while fostering a healthy market environment for the cryptocurrency.