Ripple's ongoing sales of XRP are seen as crucial for the ecosystem's development, according to a prominent community figure known as "XRP Nurse." Since receiving 80 billion XRP in 2012, Ripple has sold over 42 billion tokens, currently holding 37.685 billion XRP. These sales, facilitated through an escrow system, have sparked concerns about market pressure. However, "XRP Nurse" argues that the sales are necessary to fund growth and infrastructure, suggesting it would be more concerning if Ripple ceased these sales.
Ripple's sales strategy involves releasing 1 billion XRP monthly, selling approximately 300 million, and locking up the remainder. This approach accounts for just 0.25% of XRP's global monthly trading volume. The funds from these sales are used to enhance enterprise partnerships, liquidity, and payment corridors. Former Ripple CTO David Schwartz emphasized that selling XRP helps reduce centralization concerns, as holding a large supply could lead to control issues. Schwartz dismissed alternatives like token burning, citing past ineffectiveness in influencing price positively.
Ripple's XRP Sales Deemed Essential for Ecosystem Growth
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