Ripple’s CTO, David Schwartz, recently addressed concerns about the transparency of Ripple’s XRP sales amidst discussions regarding the state of the XRP Ledger. These discussions surfaced following allegations that Ripple may be attempting to conceal its XRP sales through proposed developments within the XRP Ledger ecosystem.
Notably, accusations were made by community members regarding Ripple’s responsibility for the current state of the network, including the lack of financial support for infrastructure providers.
The controversy escalated with the announcement of XPUNKS, an NFT project built on the XRP Ledger, intending to migrate to the Solana blockchain. This move garnered support from the Onledger project team, further implicating Ripple for the alleged decline of the XRP Ledger ecosystem.
Onledger asserted that Ripple’s partnership with Peersyst Technology to launch an EVM sidechain for the XRP Ledger could facilitate the concealment of XRP sales. They claimed Ripple’s motive behind the EVM sidechain was to wrap XRP tokens and sell them without traceability. Despite Ripple’s restraint in implementing smart contracts functionality, Onledger suggested that the company’s opposition to such features stemmed from their inability to obscure XRP sales.
In response, David Schwartz refuted the claims, highlighting that if Ripple intended to conceal its XRP sales, it could effortlessly execute them on exchanges with less transparency. He emphasized that while exchanges might be aware of Ripple’s involvement in the sales, the public would remain unaware.
Although Ripple’s XRP sales have been publicly disclosed in the past, concerns persist regarding their impact on XRP’s price volatility. Market participants have attributed price suppression to Ripple’s sales, particularly those involving institutional investors and trading bots. However, Schwartz confirmed that Ripple had ceased institutional sales, contradicting claims of ongoing suppression.
Despite the controversies surrounding Ripple’s XRP sales, the cryptocurrency has shown resilience in its price performance. With the price of XRP standing at $0.605157 and a 24-hour trading volume exceeding $2.5 billion, indicators suggest a potential for bullish momentum in the short term.
The 1-Day RSI reading of 48.88 hints at a nearing oversold condition, while the MACD trading above the signal line and positive momentum indicated by the 1-Day KST suggest a favorable outlook for XRP.
