The Influence of Ripple's Periodic Sales on the Price of XRP
- 王林Original
- 2024-07-21 07:28:09674browse
The influence of Ripple’s periodic sales on the price of XRP has long been a controversial topic among members of the crypto community.
Members of the crypto community are at odds over the influence 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.
However, financial expert Kevin Mickle has refuted these accusations. According to Mickle, 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.
Moreover, Mickle added that the XRP market is sufficiently liquid and vast enough to absorb these sales without any significant impact. In fact, he stated 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.
To conclude, Mickle believes that investors should focus on these other factors to better understand XRP’s price movements, rather than blaming Ripple for something it is not responsible for.
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