HomeNewsRipple CTO Explains XRP Price Struggles Amid XRPL Exit Exodus

Ripple CTO Explains XRP Price Struggles Amid XRPL Exit Exodus

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  • David Schwartz, CTO of Ripple, talks about why selling XRP is inevitable given the tax ramifications and holding difficulties.
  • With a lack of self-interest and a lack of confidence in Ripple’s leadership, Dev Null Productions leaves the XRP ecosystem.

David Schwartz, the CTO of Ripple Labs, recently discussed the difficult tax issues that Ripple executives had to deal with after earning XRP incentives, highlighting how “nearly impossible” it would be to keep the digital asset.

Ripple Executives’ Tax Implications

He gave an example of a scenario in which a bonus distribution of one million XRP would require selling a significant amount in order to satisfy the high tax obligations required by both federal and state legislation, with a combined marginal tax rate of fifty percent.

This revelation comes as Dev Null Productions exits the XRP ecosystem, citing dissatisfaction with Ripple’s leadership and the XRPL Foundation’s purported self-serving actions, as previously reported by ETHNews.

This move raises concerns about Ripple’s leadership’s commitment to the ecosystem’s larger interests and is a major loss for the community.

Criticism to Ripple and XRPL Foundation

The XRPL Foundation is also under fire for supposedly prioritizing personal objectives over the interests of the XRP community. Dev Null Productions’ decision to discontinue XRP-related projects like Ledger City is evidence of the community’s increasing dissatisfaction.

Schwartz clarified the difficulties associated with answering questions from the community on the effects of adding XRP to Automated Market Maker (AMM) pools.

He pointed out that combining XRP with another asset in these pools essentially amounts to selling it, which affects its market value. To explore this development in more depth, you can watch the YouTube video below.

Legal Challenges and Pricing Pressures

Ripple’s troubles are exacerbated by ongoing legal disputes, as emphasized by attorney Fred Rispoli, who notes the SEC’s focus on Ripple’s institutional sales tactics, repeating previous ETHNews coverage.

The matter under consideration is the reduced sale of XRP to institutional investors, which, according to Rispoli, may have played a significant role in the digital asset’s muted pricing and further muddied the waters for holders of both XRP and Ripple.

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Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: info@ethnews.com Phone: +49 160 92211628