Coin Edition -
- XRP’s value drops below $0.5 amid a recent favorable court ruling.
- XRP’s dip sparks arguments about Ripple’s limited escrow XRP sales strategy.
- Advocates argue that controlled sales aim to boost XRP’s value and support infrastructure.
Once more, XRP’s value has dipped below the $0.5 threshold, erasing the accrued gains after a crucial court ruling in the United States Securities and Exchange Commission’s (SEC) lawsuit against Ripple. This development has sparked discussions regarding the appeal of XRP, particularly in light of how Ripple manages its monthly release of escrowed XRP.
In particular, XRP critic Alter Diego voiced apprehensions about Ripple’s minimal sale of the substantial portion of its monthly allotment of escrowed XRP, despite obtaining regulatory clarity. In response, members of the “XRP Army” online community put forth contrasting perspectives concerning Ripple’s XRP sale from escrow.
Well-known XRP advocate and lawyer Bill Morgan argued that Ripple’s practice of selling fewer XRP from the one billion monthly release aimed at bolstering the XRP price.
“The fact Ripple decides not to sell most of the XRP released each month from escrow tells me what I already know from the SEC’s evidence in the Ripple case. Ripple takes steps to support XRP’s price,” Morgan remarked.
The fact Ripple decides not to sell most of the XRP released each month from escrow tells me what I already know from the SEC’s evidence in the Ripple case. Ripple takes steps to support XRP’s price. https://t.co/QOTUZXnBhY— bill morgan (@Belisarius2020) October 9, 2023
Notably, Morgan’s statement implies that Ripple’s choice to refrain from saturating the market with its held XRP tokens is a purposeful action designed to maintain XRP’s price. Additionally, the attorney believes this strategy is in harmony with the company’s objectives in managing the ongoing legal dispute with the US regulator.
Similarly, another XRP enthusiast, Julian Williams, contended that even if Ripple were to liquidate its monthly XRP escrow allotments entirely, critics would still accuse the company of “dumping” XRP.
Furthermore, Williams underscored that these sales aim to bolster the infrastructure essential for the optimal operation of new On-Demand Liquidity (ODL) networks, which rely on a specific level of liquidity for their efficiency.
It is worth mentioning that Ripple’s total spendable XRP assets are 5.55 billion, per its Q2 report. Regarding XRP held in escrow, Ripple has 41.9 billion XRP to be released over the next few years.
The post XRP Community Divided on Ripple’s Management of Monthly Escrow Release appeared first on Coin Edition.