In a recent Twitter exchange surrounding Ripple’s impact on the price of XRP, former Director of Developer Relations at Ripple, Matt Hamilton, shared insightful perspectives on the matter. The lively debate began when a blockchain enthusiast named Mitch tweeted, sparking a discussion on the relationship between Ripple and XRP.
Mitch initially stated that he mistakenly referred to XRP as a centralized company. Hamilton swiftly responded, emphasizing that companies, by nature, are centralized. However, he also drew attention to the decentralized nature of the XRP Ledger.
Mitch clarified that his comment was a mere typo, acknowledging the difference between Ripple and XRP. Despite claiming it was a typo, he raised questions about its centralization and the distribution of XRP. He expressed curiosity about who runs the validators and whether the distribution of XRP is healthy.
Hamilton clarified that the XRP Ledger is a permissionless network, meaning anyone can run a validator. He then raised an intriguing question: Who controls the majority of XRP supply, and does it have any impact on price stability or money flows?
Ripple’s XRP Holdings: Size & Impact On Price
Continuing the discussion, Mitch expressed skepticism regarding the company’s attempts at decentralization while still being a centralized company that owns a significant portion of XRP supply. He hoped it would accelerate the path to decentralization without exploiting the community for exit liquidity.
Hamilton addressed Mitch’s concerns, explaining that Ripple is indeed the largest holder of XRP, with approximately 48 billion XRP, most of which is held in escrow contracts. The company periodically releases a small portion of the XRP while putting the rest back into new escrow contracts.
In terms of influencing price, Hamilton highlighted that Ripple’s holdings are relatively small compared to the daily global sales volume of XRP, which is around 4 billion XRP. He noted that the price of XRP mainly follows market trends and is often influenced by Bitcoin.
However, the Twitter debate provided valuable insights into the relationship between Ripple and XRP. Hamilton’s explanations shed light on the company’s holdings, distribution, and influence on the XRP market. The conversation concluded with an optimistic tone, as both participants expressed a desire to learn more and hoped for increased decentralization within the Ripple ecosystem.
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