- Despite Ripple’s substantial escrow holdings, former director Matt Hamilton counters the claim that the company could manipulate XRP’s price.
- Hamilton underlines the role of market conditions and Bitcoin (BTC) price movements in influencing XRP’s value.
The massive XRP holdings of Ripple, locked away in various escrow wallets, have long been a subject of heated debate among market stakeholders. The issue was recently reignited by a crypto aficionado who raised questions about Ripple’s proclaimed decentralization, given the company’s considerable control over the XRP supply. This led to discussions about Ripple’s potential to impact XRP’s price due to its substantial holdings.
Ex-Ripple Director Sets the Record Straight
In response to these claims, Matt Hamilton, a former Director of Developer Relations at Ripple, shed some light on the matter. While acknowledging Ripple as the single largest holder of XRP, Hamilton emphasized that a significant portion of these tokens remains locked in escrow contracts, released only in periodic batches.
Ripple routinely sells a fraction of its unlocked XRP tokens to meet the company’s On-Demand Liquidity (ODL) requirements and for undisclosed purposes. The remaining tokens are typically placed into new escrow wallets. To illustrate this point, The Crypto Basic reported on Ripple unlocking 1 billion XRP on July 1, worth roughly $453 million at the time of transaction.
However, Hamilton was adamant that Ripple’s holdings do not exert influence over XRP’s price. He pointed to the vast difference between XRP’s daily sales volume, estimated around 4 billion, and Ripple’s holdings. He insisted that XRP’s price is largely subject to prevailing market conditions and Bitcoin (BTC) price movements.
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To dispel any lingering doubts, Hamilton explained that the XRP community could vote to burn Ripple’s holdings should the company’s actions appear to be unduly influencing the price.
This enlightening conversation unfolds in the wake of Ripple’s partial victory in its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). Despite the likelihood of appeals from both sides, the court ruling affirmatively declared that XRP does not constitute a security, marking a significant stride in Ripple’s favor.
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