In a recent discussion surrounding Ripple’s significant XRP holdings, CTO David Schwartz provided insights into the company’s strategy to dilute its XRP holdings, shedding light on their ongoing efforts to reduce their substantial share in the digital asset. The firm’s Q3 2023 XRP Markets Report, released last November, disclosed that as of September 2023, Ripple held 46.55 billion XRP, representing 46.5% of the maximum total supply of 100 billion tokens.
Within its custody, Ripple maintained a spendable balance of 5.258 billion XRP, with a considerable 41.3 billion XRP held in escrow. The company adheres to a monthly release of 1 billion XRP from escrow, with 800 million promptly relocked, contributing to the meticulous management of their XRP holdings.
Continuing its trend, Ripple sold 892 million XRP in Q3 2023, according to the latest XRP Markets Report. This persistent selling strategy has raised concerns within the crypto community, with fears of sustained price suppression on XRP prompting calls for alternative approaches, including the incineration of Ripple’s escrow balance.
Addressing these concerns, a community member with the alias “GPD.Burn the Escrow” questioned Schwartz about the long-term nature of Ripple’s XRP sales in a recent discussion. Schwartz responded, emphasizing that the firm currently has two options with its XRP holdings – to either continue holding the tokens or systematically sell them to reduce their holdings. Notably, he asserted that there is no third choice, confirming the company’s commitment to swiftly reduce its XRP holdings.
When questioned about the feasibility of burning the escrow, Schwartz dismissed the idea, stating that he could not envision any scenario where it would be a viable option. He further emphasized that such an action would yield no benefits, an observation previously highlighted by Crypto Basic in a previous report.
In a surprising revelation, Schwartz disclosed that he personally preferred to receive Ripple shares instead of XRP. He clarified that, although uncertain about the decision’s merit, if he had opted for XRP tokens instead of Ripple shares, his holdings would have been more liquid at present.
This revelation sparked additional discussions within the crypto community, with community members questioning the rationale behind Schwartz’s preference for Ripple shares. The CTO defended his choice, highlighting the current market valuation of Ripple’s shares at approximately $11.3 billion. Additionally, recent reports indicate that Ripple intends to repurchase $285 million worth of its shares, signaling confidence in the company’s financial stability. Ripple CEO Brad Garlinghouse affirmed that the company has no immediate plans for an initial public offering (IPO).
Continuing its trend, Ripple sold 892 million XRP in Q3 2023, prompting concerns within the crypto community about potential sustained price suppression on XRP. Some have called for an alternative approach, such as burning Ripple’s escrow balance, to address these concerns.
In response to a query during a recent discussion, Schwartz highlighted that Ripple has two options regarding its XRP holdings: either retain the tokens or systematically sell them to reduce their holdings. Schwartz emphasized that a third option is not on the table, confirming the company’s commitment to reducing its holdings as swiftly as possible.
The discussion touched upon the idea of burning the escrow, with an individual suggesting this as a potential solution. Schwartz dismissed the feasibility of this approach, stating that he could not envision any scenario where it would be viable. He further asserted that burning the escrow would not yield any significant benefits.
As the discussions unfold, the crypto community remains attentive to Ripple’s strategic decisions, particularly the ongoing sales and the potential impact on XRP’s market dynamics. The company’s commitment to reducing its XRP holdings adds a layer of complexity to the narrative, with stakeholders eager to witness how these developments will shape the future of one of the most prominent digital assets in the crypto space.
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