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Ripple CTO Asserts Falling XRP Prices Won’t Trigger More Token Sales
Recent discussions have arisen regarding Ripple's handling of its XRP reserves amid price declines and a potential shift in business strategy with the introduction of the RLUSD stablecoin. Concerns focus on whether lower XRP prices might compel Ripple to sell more tokens.
Key Points
- Ripple CTO David Schwartz addressed concerns, stating that falling XRP prices do not force the company into additional token sales.
- Schwartz emphasized that Ripple's revenue structure now allows it to operate independently of market conditions.
- Ripple's income historically relied heavily on controlled XRP sales, overshadowing revenue from enterprise products like RippleNet.
- The escrow program manages XRP supply by releasing 1 billion tokens monthly, with most returned to escrow, minimizing market impact.
- Despite current reliance on XRP sales, Ripple is exploring new income channels to diversify revenue sources.
An image of the XRP price chart is included:
