News
Is Ripple Really Manipulating the Price of XRP?
5:30 p.m. ▪ 3 min read ▪ by Luc Jose A.
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. In particular, he refuted accusations that Ripple intentionally lowers the price of XRP through its monthly sales.
Ripple Selling and Delisting Accusations
Members of the crypto community are divided over the impact of Ripple’s periodic XRP sales. As the issuer and largest XRP holderThe company releases one billion tokens from its escrow accounts every month. Of this amount, 80% are re-blocked, while the remaining 20% are sold to fund the company’s operations.
The Good Morning Crypto podcast recently conducted an investigation These movements have been studied. The survey found that nearly 67.7% of the 1,964 participants believe that these periodic sales are driving down the price of XRP. These results highlight the persistent distrust within the community regarding Ripple’s intentions.
The Real Impact of Ripple Sales on the Cryptocurrency Market
Mickle responded to the accusations. The expert said that the impact of Ripple’s XRP sales on the price of the crypto asset is minimal. He explained that Ripple sells its tokens strategically to avoid oversupply in the market. “Ripple’s sales represent an insignificant fraction of XRP’s daily trading volume,” he noted. Mickle also pointed out that these sales are primarily aimed at institutional clients and strategic investors. This maneuver is intended to promote long-term adoption rather than short-term price fluctuations.
Mickle added that the XRP market is liquid and large enough to absorb these sales without significant impact. Additionally, the expert mentioned that Bitcoin price fluctuations influence XRP’s price much more than Ripple’s periodic sales. “Like most crypto assets, XRP’s price is correlated to Bitcoin’s,” he observed. He also noted that occasional disconnects can occur, as was the case last week.
In short, Ripple is wrongly blamed for XRP’s price fluctuations. Data shows that other factors play a bigger role in this trend. Mickle therefore recommends investors to focus on these aspects to better understand XRP Price Evolution.
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Luc José A.
A graduate of 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 am committed to raising awareness and informing the general public about this constantly 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 current events, decipher market trends, relay the latest technological innovations and put into perspective the economic and societal challenges of this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decision.