XRP

Ripple Senior Manager Responds to Allegations of Manipulation in XRP Price

In a recent statement, Ripple's Chief Technology Officer (CTO) David Schwartz flatly denied allegations that Ripple is manipulating the price through programmatic XRP sales.

Schwartz stated the following in his statement on the subject: "I do not believe that our programmed XRP sales manipulate the price in any way. I am sure that we make every effort to minimize the impact of our programmed sales on the price." Schwartz flatly denied the accusations and said that Ripple will be released in the first year of 2023. He stated that he stopped scheduled XRP sales starting from the quarter and this decision was explained in detail in Ripple's 2023 1st Quarter XRP Markets Report. Additionally, Schwartz emphasized that Ripple always tries to minimize the impact of such sales on the price. According to Schwartz's explanation, programmed sales represent sales that occur through market making, usually with a slight net bias aimed at reducing the amount held. According to Schwartz, an asset is sold by helping others both buy and sell that asset, but the net result refers to selling rather than buying. Schwartz also clarified the concept of On-Demand Liquidity (ODL) used in Ripple's international payment system. Sales associated with On-Demand Liquidity (ODL) occur when a person wants to make a payment somewhere using Ripple payments. For example, if a person wants to send Mexican pesos, they can buy XRP from Ripple at the time they need to pay, send the XRP to a Mexican exchange, exchange the XRP for Mexican pesos, and then use a payment provider to make a Mexican local payment to the recipient. If Ripple receives back less of the XRP sold in this payment, this is net in connection with the ODL..