Unraveling the Mystery Behind XRP Price Underperformance: Insights from Ripple’s CTO

The post Unraveling the Mystery Behind XRP Price Underperformance: Insights from Ripple’s CTO appeared first on Coinpedia Fintech News

Having in mind the XRP’s underperformance,  Ripple’s sales techniques have raised serious questions within the Ripple community. As a response, Chief Technological Officer of Ripple, David Schwartz came out to clarify Ripple’s approach to selling XRP. Read further to know Schwartz’s clarifications as well as reactions from the community getting an insight into how the company sells its tokens and how this affects its performance in the market.

While Bitcoin and Ether have recently surged in price, XRP has not managed to rise above $0.60, prompting fear among investors. Many members of the community attribute this poor performance by XRP to Ripple selling off their XRP which has also sparked a discussion on sales strategy for the company.

Ripple’s programmatic sales

Schwartz sought to clear up questions that arose after documents emerged showing that Ripple had been engaging in programmatic sales of XRP. He said clearly that these programmatic sales stopped in 2020 according to Q1 2023 XRP markets report by the firm. It is disclosed in this report that currently only ODL (Ripple Payments) partners are buying XRP from Ripple to use it for liquidity on cross-border payments.

Schwartz made it clear that the company only sells XRP to ODL partners and not through programmatic sales. He also said that there is a difference between selling via programmatic methods and selling to ODL partners as the firm keeps buying more XRP from the open market.

According to Schwartz, sometimes Ripple would sell more XRPs to ODL partners than it purchased via the open market, hence causing a decrease in the company’s balance of XRPs. These revelations disclose how Ripple transacts its business with regard to XRP.

Concerning the poor performance of XRP as well as sales approaches, David Schwartz, CTO of Ripples has been attempting to address the concerns of people in communities while waiting for further transparency concerning sales practices from Ripple among the cryptocurrency community.

There is a dire need for greater transparency and communication from Ripple and other crypto entities to address community apprehensions effectively.