Crypto: Does Ripple really manipulate the price of XRP?
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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Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
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.