Ripple CTO David Schwartz Reveals Why Ripple Is XRP’s Top Seller

Ripple CTO David Schwartz has addressed concerns regarding Ripple's dumping of XRP through its massive token sales and highlighted reasons why Ripple is XRP's biggest seller. Schwartz also said the company has no plans to suspend or change the dynamics of its XRP sales.

Ripple CTO Explains the Firm's Massive XRP Sales

Many people within the crypto space have retorted against Ripple's massive XRP sales. The criticism came following the blockchain's release of its XRP sales in Q1 2024. However, David Schwartz, Ripple's CTO, took to X on May 19 to defend the company's sales activities. He noted that Ripple remains the largest XRP seller since it holds the most coins.

Further, Schwartz pointed out that continuing to hold the coins is the only viable alternative to selling XRP. So, he explained that since Ripple has a large amount of XRP, it either sells or holds them indefinitely.

Schwartz stated:

Because Ripple has the most XRP and, in practice, the only realistic alternative to selling it is continuing to hold the most XRP indefinitely."

An X user, @ Darkhorse, voiced concerns over Ripple's massive XRP sales, urging the firm to reconsider its sales strategies. He suggested a temporary halt in sales to monitor the token's price impact.

In response, the CTO noted that Ripple has no plans to halt or suddenly ramp up XRP sales. Schwartz emphasized the relevance of transparency in Ripple's activities, noting that deliberate price manipulations are unethical and have grave implications.

Ripple's Q1 2024 Report and Holdings

According to Ripple's Q1 2024 report, the company sold 841.5 million XRP tokens within the first quarter. Following the sales, the firm's XRP holding slipped to 44.94 billion as of March 31, 2024.

A further split of the holdings showed that while other Ripple accounts hold 4.8 billion XRP, its escrow wallets hold 40.1 billion XRP. The total holdings represent roughly 44.94% of XRP's total token supply.

In addition, Ripple's XRP sales in Q1 2024 showed a 16% drop from 1.006 billion tokens sold in Q4 2023. The blockchain firm still stands as the biggest XRP seller in the industry.

According to Ripple's schedule, it releases 1 billion XRP tokens from escrow every month. However, the released amount has deviated over the past few months.The escrow wallets are expected to release XRP monthly for the next 42 months. However, with recent changes, the monthly release could last longer.

Ripple cannot sell tokens from the escrow accounts until monthly releases. Often, the company locks back a percentage of the released XRP tokens from escrow. This strategy helps to prevent the over-saturation of the XRP market while boosting its price trend.

XRP Market Outlook

XRP trades at $0.5424, reflecting a 5.90% increase over the past 24 hours. Moreover, its 7-day price action showed a surge of 7.43%. The bulls have maintained a robust defense while keeping XRP above the $0.50 threshold. Its upper dynamic resistance has also hit the $0.80 mark.

XRP's market cap currently sits at $29.96 billion. Surprisingly, it recorded a staggering 139.68% increase in its 24-hour trade volume, reaching $1.95 billion, which suggests increased trading activity.

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