Ripple’s Chief Technology Officer, David Schwartz, has responded to concerns regarding the company’s sales of XRP in the first quarter of 2024. The Q1 report revealed that Ripple sold an impressive 841.5 million XRP during this period, resulting in a decrease in Ripple’s XRP holdings to 44.94 billion (equivalent to 44.94% of the coin’s maximum supply) by March 31, 2024.
It is worth noting that Ripple’s XRP sales in Q1 2024 represented a 16% decrease compared to the 1.006 billion coins sold in the previous quarter. Nevertheless, Ripple remains the largest seller of XRP.
Schwartz explained that Ripple is the largest seller of XRP simply because the company holds the most of it. Due to this significant amount, Ripple’s only option, aside from selling, is to continue holding the coins indefinitely.
As of March 31, 2024, Ripple held 44.94 billion XRP, with 40.1 billion held in multiple escrow wallets programmed to be released in batches on the first day of each month. According to XRPScan data, Ripple’s escrowed balance has decreased to 39.7 billion XRP, resulting from the release of 400 million XRP into the company’s spendable account in April and May.
Ripple’s spendable balance as of March 31, 2024, was approximately 4.84 billion XRP. It is important to note that Ripple typically conducts sales from this spendable account to cover legitimate business expenses.
The current exchange rate of XRP is $0.5357, representing a 13.4% year-to-date decline. Critics attribute this underperformance to Ripple’s continuous sales and suggest that the company should burn all the XRP held in escrow to stimulate a significant price increase.
However, Schwartz remains unconvinced that burning the escrowed XRP coins would have a positive impact on the price. On the other hand, some enthusiasts believe that XRP’s underperformance in recent years is due to the SEC lawsuit. The lawsuit, which played a significant role in preventing XRP from reaching a new all-time high during the 2021 bull cycle, is nearing its conclusion.
Prominent crypto stakeholders, including Schwartz, anticipate a final resolution this year. The parties involved have already submitted their final briefs in the remedies phase and are now awaiting the final judgment.
Disclaimer: This article provides informational content and should not be considered as financial advice. The opinions expressed in this article are solely those of the author and do not reflect the views of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses incurred.