On 13th if July 2023, the crypto industry shaping judgement given by the U.S. District Judge Analisa Torres that the XRP is not a security in most of the scenarios. This is supposed to be a historic victory for the crypto industry against SEC. It is supposed that many other crypto projects will be motivated by this partial win of Ripple. Due to this landmark victory of XRP, the internet is storming with the discussions about the relationship between XRP and Ripple. In the similar Twitter discussion between one of the Twitter user @58mitchs and the former Director of Developers Relations at Ripple Matt Hamilton, some important aspects of XRP and Ripple are interesting to know. In this article, we will look into some the key points from that discussion and derive some of our own conclusion. So, let's dive in...!!
Ripple's XRP Holding and It's Influence on XRP's Price
There was a thing going on the internet, that XRPs sale volume is around 4 billion daily, in order to contradict this let's see the point from the Twitter discussion.
According to Matt Hamilton, the Ripple holds around 40 billion XRP tokens and most of it is in escrow contracts. The escrow contracts are designed in such a way that, some amount of XRP tokens are released from escrow on monthly basis and some portion of it is sold by Ripple and rest is sent to other escrow contract. (No data available on what percentage is sold and how it is determined!)
This clarifies to some extent that there isn't any direct control over the XRP token and there are not high-volume sales made by Ripple. Well, a company with a recent win with the SEC (spent tremendous amount of money on lawyers as well!) and having 48 billion in holding is selling close to 4 billion daily, that is around 10% of total holding, sounds little unrealistic.
Another thing we can understand that Ripple does not have influence over the price of XRP in the market. And the price of XRP is driven by market dynamics and the price of Bitcoin, as most other cryptocurrencies move!
Control of XRP-Community
Another point that Matt Hamilton mention is that XRP community has the voting rights to burn the XRP holdings of Ripple, if seen that the company is not acting in the support of XRP.
Important thing to notice here is, in most of the decentralised voting system, the weightage of a single vote is determined based on the amount of native token held by that account, but contradictory to that, in case of XRP there is no involvement or weightage based on the XRP held by wallet. This clarifies that the community has the 'say' in the ecosystem.
Conclusion
Many people are still not sure about the relationship between Ripple and XRP, many people thinks XRP is highly controlled by Ripple and there are lot more miscommunication or doubts for the crypto community. But with this article, I hope some doubts are cleared. I am sure, in future things will be clearer and will see if crypto community adopts or rejects XRP!
You can share your views/opinions on XRP and Ripple relation or recent win of Ripple against SEC!
[Note: The purpose of this article is to share information and should not be taken as any type of trading or investment advice. Trade and invest responsibly based on your own research]
Hope you guys find this short article informative! If yes, then do follow me and share your views on the current crypto market in the comment section.
Thanks for Your Time!
Check out My Previous Articles!
1. Guide to Delegate/Stake Cardano ($ADA) Tokens on Yoroi: 2023 Updated Version!
2. Guide to Delegate/Stake Cosmos ($ATOM) Tokens on Keplr: 2023 Updated Version!
3. This Week's Crypto Inflow Soars to $125 Million! Unveiling the Weekly Flows of Digital Asset Investments
4. CME Institutions Insanely Bullish on Crypto or It's a Trap?
5. A New CME Gap Forms on Bitcoin Chart – What Does It Mean for Traders?
Hi, I am Ashish, an Author of this article!
I am an individual crypto writer and I write about the latest crypto news, crypto trading data, crypto guides, and it's been five years in the crypto space! If you are interested in getting notified when I publish my next article then do follow me @CryptoManthan, and thanks if you are already a follower!
Below are some of my referral links to verified and tested platforms where you can earn a small amount of crypto, so if you are interested and looking for such platforms then definitely check them out, it'll help me as well.
