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Ripple’s XRP Holdings and Escrow Release Strategy
Ripple, a major blockchain company, has been under scrutiny for its handling of XRP token sales. The company’s Chief Technology Officer, David Schwartz, recently addressed concerns regarding Ripple’s XRP holdings and sales strategy.
Ripple’s XRP Holdings Breakdown
- Ripple’s XRP holdings consist of liquid XRP in wallets and XRP locked in escrow accounts.
- As of March 31, 2024, Ripple held 4.8 billion XRP tokens directly, with an additional 40.1 billion XRP locked in escrow.
- The escrowed XRP is released monthly, with most tokens returned to reset the escrow clock.
Schwartz explained that selling XRP is essential for Ripple to access liquidity from its holdings, emphasizing that it is a necessary step for the company.
Reactions to Ripple’s XRP Sales
In response to Schwartz’s statements, a crypto researcher known as Darkhorse suggested that Ripple reassess its sales strategy to evaluate its impact on XRP liquidity and price.
SEC Criticized for Aggressive Stance on Crypto Firms
Ripple’s legal battle with the SEC has been ongoing, with the company contesting a $2 billion penalty fee demanded by the regulator. Ripple argues that the penalty is unjustified, given the absence of allegations of reckless or fraudulent behavior.
Ripple’s Chief Legal Officer, Stuart Alderoty, criticized the SEC’s actions, labeling them as intimidation tactics against the crypto industry in the U.S.
The SEC’s recent actions have drawn criticism from industry experts, with concerns raised about the regulator’s approach towards crypto firms like Ripple and Coinbase.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
