David Schwartz, Ripple's CTO Explains Its XRP Tokens Sales Strategy

Img src

Ripple, one of the biggest blockchain firms, has been condemned for its rising, and continuous sales of Ripple token (XRP). On the 19th of May 2024, David Schwartz, who is the Chief Technology Officer (CTO), shed light on why Ripple has been selling XRP tokens that it holds.

David Schwartz's explanation was directed to a thread that condemned Ripple's sales strategy of its XRP tokens holdings. Ripple released a report in the first quarter of this year, showing that its XRP holdings are broken into two parts: the liquid XRP that is readily available, and the XRP that is locked in escrow.

The XRP that is locked in escrow, is fixed to be released over a period of 42 months. Ripple was holding about 4.8 billion liquid XRP tokens, and about 40.1 billion escrowed XRP, as of 31st of March 2024.

Schwart explained that the sales of its XRP tokens, is the only way Ripple could gain liquidity from its holdings, instead of allowing it remain unused for unspecified period of time. There are no indications from Ripple that it will stop this strategy of selling its XRP holdings.