Sat 20 Jul 2024 ▪
3
min of reading ▪ by
The influence of Ripple’s periodic sales on the price of XRP has long been a controversial topic among members of the crypto community. Recently, financial expert Mickle addressed this issue. He notably refuted accusations that Ripple intentionally suppresses the price of XRP through its monthly sales.
Ripple’s sales and suppression accusations
Members of the crypto community are divided on the impact of Ripple’s periodic XRP sales. As the issuer and largest holder of XRP, the company releases one billion tokens from its escrow accounts each month. Of this amount, 80% are locked again, while the remaining 20% are sold to fund the company’s operations.
The Good Morning Crypto podcast recently conducted an investigation into these movements. The investigation revealed that nearly 67.7% of the 1,964 participants believe that these periodic sales lower the price of XRP. These results highlight the persistent mistrust within the community regarding Ripple’s intentions.
The real impact of Ripple’s sales on the crypto market
Mickle responded to the accusations. The expert stated that the impact of Ripple’s XRP sales on the crypto asset’s price is minimal. He explained that Ripple sells its tokens strategically to avoid market oversupply. “Ripple’s sales represent an insignificant fraction of the daily trading volume of XRP,” he noted. Mickle also highlighted that these sales are primarily directed towards institutional clients and strategic investors. This maneuver aims to promote long-term adoption rather than short-term price fluctuations.
Mickle added that the XRP market is sufficiently liquid and vast enough to absorb these sales without significant impact. Moreover, the expert mentioned that Bitcoin price fluctuations influence the price of XRP much more than Ripple’s periodic sales. “Like most crypto assets, XRP’s price is correlated with that of Bitcoin,” he observed. He also noted that occasional disconnections can occur, as was the case last week.
In summary, Ripple is wrongly blamed for XRP’s price fluctuations. Data shows that other factors play a more significant role in this trend. Mickle therefore recommends that investors focus on these aspects to better understand XRP’s price movements.
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Graduated from Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I committed to raising awareness and informing the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. Every day, I strive to provide an objective analysis of the news, decipher market trends, relay the latest technological innovations, and put the economic and societal issues of this ongoing revolution into perspective.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
