NewsletterRipple CTO David Schwartz Reveals Unexpected Truths About XRP’s Distribution and Supply
Ripple’s Chief Technology Officer, David Schwartz, recently shared insights into the company’s strategy regarding its XRP holdings. These revelations provide a clearer understanding of Ripple’s approach to managing its cryptocurrency assets.
Ripple’s XRP Allocation
Ripple’s XRP assets are divided into two distinct categories. The first comprises the XRP currently available in Ripple’s wallets. The second category includes XRP under on-ledger escrow lockups, scheduled for release over the upcoming months. However, it is important to note that Ripple does not have immediate access to the XRP in escrow until its scheduled monthly release. Historically, a significant portion of the released XRP has been returned to escrow.
Choices and Strategies for XRP Holdings
Addressing a query from a user, Schwartz outlined Ripple’s options concerning its XRP holdings. Essentially, Ripple can either continue maintaining its current level of XRP holdings or opt to reduce them. According to Schwartz, the company planned to diminish its XRP holdings as swiftly as possible. However, he doubts about this original strategy’s feasibility and potential benefits.
Initially, the company considered using giveaways to decrease its XRP supply. Yet, as XRP gained market value, the possibility of people exploiting these giveaways emerged, leading to their discontinuation. Ripple also explored alternative methods, such as locked-up sales and using XRP to incentivize partners. However, these strategies ultimately resembled direct sales of XRP.
Long-Term Vision and Escrow Decisions
Schwartz noted that Ripple is progressing well into what was initially a five-year plan despite being more than a decade in operation. He also addressed the community’s questions about managing the escrowed XRP. In addition, Schwartz expressed ambivalence about the escrow itself and dismissed the notion of burning the escrowed supply, suggesting it might yield a different result.
Read More: Robert Kiyosaki Backs Bill Ackman’s AI Project for Academic Integrity
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- December Recovery Ahead? Coinbase Outlines Why Crypto Market May Rebound
- Peter Brandt Hints at Further Downside for Bitcoin After Brief Rebound
- $1.3T BPCE To Roll Out Bitcoin, Ethereum and Solana Trading For Clients
- Why is the LUNC Price Up 70% Despite the Crypto Market’s Decline?
- CoinShares Fires Back at Arthur Hayes, Dismisses Fears Over Tether Solvency
- Ethereum Price Holds $3,000 as Bitmine Scoops Up $199M in ETH; What Next?
- Solana Price Outlook Strengthens as Spot ETFs See $15.68M in Fresh Inflows
- Dogecoin Price Gears Up for a $0.20 Breakout as Inverse H&S Takes Shape
- Bitcoin Price Forecast as BlackRock Sends $125M in BTC to Coinbase — Is a Crash Inevitable?
- XRP Price Prediction As Spot ETF Inflows Near $1 Billion: What’s Next?
- Solana Price Outlook: Reversal at Key Support Could Lead to $150 Target
