The XRP community has been expressing concerns about the slow growth of XRP to Ripple’s Chief Technology Officer (CTO), David Schwartz. They have proposed solutions such as burning the escrowed XRP tokens to potentially increase the value of the cryptocurrency. In response, Schwartz has provided insights into these suggestions.
An XRP community member, known as “GDP.Burn the escrow”, questioned Schwartz about the stagnant growth of XRP, the native token of the Ripple network. The member asked if Ripple’s core business was “dumping?” Schwartz explained Ripple’s strategy for managing XRP and enhancing its value. He revealed that Ripple uses two strategic options: holding large amounts of XRP or reducing the amount of XRP in circulation. He confirmed that Ripple initially planned to quickly reduce the network’s XRP holdings.
The community member then suggested an alternative solution of burning the XRP tokens in its escrow wallet. However, Schwartz emphasized that burning the escrow would not yield any “real benefits”. Another community member responded to Schwartz’s statement, suggesting that XRP holders would be disadvantaged for at least 10 years until the escrow is depleted.
Schwartz countered this statement by referring to the Stellar (XLM) escrow burning event in November 2019. Despite Stellar burning approximately 55 billion XLM tokens in an attempt to increase the value of the cryptocurrency, the price only rose to a modest $0.09 before declining. Schwartz argued that this outcome proves that an escrow burn would not necessarily increase the price of XRP.
During the discussion about burning the XRP tokens held in escrow, a community member asked if the price of XRP is currently bearish. The member’s question considered Ripple’s regulatory developments, the changing market sentiment towards XRP, and ongoing projects associated with the cryptocurrency. Schwartz acknowledged that the XRP market currently lacks confidence, but he expressed optimism that the cryptocurrency would improve over time as it continues to grow.
Despite achieving regulatory clarity during the ongoing court case between Ripple and the United States Securities and Exchange Commission (SEC), XRP’s price has struggled to rally significantly. Meanwhile, many altcoins, including Ethereum and Solana, have experienced major price surges due to the excitement surrounding the 2024 bull run. The slow growth of XRP has caused concern and frustration among its dedicated community members, who have proposed solutions such as burning the escrow to potentially push the price of XRP upwards.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | David Schwartz |
| Companies | Ripple, Tradingview.com, Solana, Ethereum, Coinmarketcap, United States Securities and Exchange Commission |
| Currencies | Stellar, Ethereum, XRP, Solana |
| Securities | None |
