Ripple has been accused of crashing the price of its native token, XRP due to its practice of selling massive XRP tokens every month from its holding. However, a closer look at the current XRP supply reveals that company’s XRP escrow is presently valued less than 50 billion native tokens of Ripple.
Status of XRP’s Escrow Wallet
Any update on Ripple or XRP carries strong opinions on both sides of the matter. The San Francisco based fintech firm, Ripple, first revealed its escrow wallet in late 2017, stating that it would be adding 55 billion of their XRP holding in the escrow wallet.
It was mentioned that the firm would use its XRP holding to boost the XRP ecosystem. As such, every month, Ripple releases 1 billion XRP from escrow wallet, which is reportedly used to fund the blockchain products and to enhance the XRP ecosystem. The excerpt from Ripple’s Market Performance page reads;
To alleviate concerns surrounding XRP supply, Ripple has placed 55 billion XRP into a cryptographically-secured escrow account. By securing the lion’s share of XRP, people can mathematically verify the maximum supply of XRP that can enter the market.
Notably, the current status of XRP supply is as follows;
- TOTAL XRP HELD BY RIPPLE 7,566,921,567
- TOTAL XRP DISTRIBUTED 43,024,433,511*
- TOTAL XRP PLACED IN ESCROW 49,400,000,013
This means that the XRP escrow holdings are currently under 50 billion XRP which is basically less than half of the total supply.
War Between Community and Ripple
Besides all the factors prevailing around Ripple’s increasing partnerships and XRP’s adoption, the current value of XRP seems less-promising. The value of XRP token has currently declined with 2.35 percent within the past 24Hrs. Although the coin still captures the third-largest spot in terms of market capitalization, it is still trading at $0.25 against USD.
Meantime, few members from the XRP army have been bashing at Ripple via campaign posted on “Change.org.” The crypto community, particularly, XRP investors are seeking Ripple to stop dumping XRP and also believe that the company’s monthly sale of XRP is causing the price to dip deeper.
While the harsh comments from the community continue, the Ripple’s leads are breaking the silence. Beside CEO Brad Garlinghouse who defended Ripple on the charge of dumping XRP, now the company’s CTO David Schwartz disappointed the XRP community. While responding to a user who asked: “Ripple to stay away from the XRP ecosystem,” David commented;
I'm afraid we're going to massively disappoint you.
— 𝙳𝚊𝚟𝚒𝚍 𝚂𝚌𝚑𝚠𝚊𝚛𝚝𝚣 (@JoelKatz) September 7, 2019
Conclusively, as per Ripple executive’s view, the company is going to keep building great things without considering the FUD whereas few XRP members are constantly voicing against Ripple, alleging the firm is the reason behind XRP’s drastic decline.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.
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