The crypto community has been immersed in discussions regarding Ripple's monthly XRP escrow management strategy, following a recent decline in the cryptocurrency's price to below $0.5 on Tuesday. The debate was sparked by concerns raised by user Alter Diego over Ripple's capacity to sell a significant portion of its monthly escrow allocation.
In response to these concerns, Bill Morgan, a pro-XRP lawyer, defended Ripple's decision not to saturate the market with XRP. Morgan stated that this move was based on evidence presented by the Securities and Exchange Commission (SEC) in an ongoing lawsuit, suggesting it is a strategic measure aimed at upholding the cryptocurrency's price and preserving investor confidence.
Julian Williams, another participant in the conversation, stressed that selling all allocations could potentially result in accusations of "dumping". He underscored the importance of minimal XRP sales in supporting Ripple's On-Demand Liquidity (ODL) service.
As per Ripple’s second-quarter report, the company possessed 5.55 billion spendable XRP and 41.9 billion in on-ledger escrow as of June 2023. This information surfaced amidst Ripple's ongoing legal confrontation with the US regulator. The outcome of this battle may further influence Ripple's escrow management strategy and consequently, the value of XRP in the market.
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