Whispers of Ripple suppressing the XRP price with programmatic trading bots have long swirled within the community. These suspicions stem from Ripple’s significant XRP holdings and the perceived sluggishness in the digital asset price growth compared to other cryptocurrencies.
Recently, Zach Rector shared leaked emails purportedly documenting a 2017 conversation regarding Ripple’s programmatic sales, reigniting these rumors.
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The leaked emails involve GSR, a prominent market maker and a member of Ripple CEO Brad Garlinghouse’s team.
They discuss discontinuing the “6t bot” for the same reason as the already discontinued “4t bot,” which purportedly represents a programmatic trading bot used by Ripple for XRP sales.
This conversation from December 2017 coincides with a significant price surge for XRP, causing speculation that Ripple’s previous sales suppressed the price.
Logical Inconsistencies and Ripple’s Strategy
However, price suppression wouldn’t align with Ripple’s interests. An XRP price jump would translate to billions in profit for Ripple, thanks to its 45 billion XRP in escrow. Zach Rector argues that Ripple prioritizes controlled growth over explosive price swings.
Unprecedented volatility caused by Ripple’s activity could deter potential partners like banks and financial institutions, who require stability for integration. Therefore, Ripple may sell XRP in a way that minimizes price impact, both positive and negative.
Ripple CTO David Schwartz Responds
Responding to these rumors, Ripple Chief Technology Officer (CTO) David Schwartz shared a snippet of the company’s last quarterly report that the company ceased programmatic sales of XRP in 2019.
In addition, institutional sales were discontinued, with current sales solely focused on partners for On-Demand Liquidity (ODL) purposes.
We stopped programmatic sales of XRP.https://t.co/JrGX8tIc31 pic.twitter.com/57efr5wKYd
— David "JoelKatz" Schwartz (@JoelKatz) February 16, 2024
While some community members appreciate this transparency, others remain unconvinced, suggesting external actors might be suppressing the price.
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Unpacking the Narrative
While the leaked emails shed light on past practices, it’s crucial to analyze them in context. The 2017 conversation occurred several years ago, and Ripple’s approach to XRP sales has demonstrably evolved since then. Furthermore, attributing XRP’s current price solely to Ripple’s past actions ignores numerous market forces and broader economic factors.
Instead of fixating on unconfirmed speculation, focusing on Ripple’s current initiatives and plans offers a more productive approach. Continued transparency regarding XRP sales and partnerships with established institutions, alongside the development of the ODL network, are key areas to observe for a clearer understanding of XRP’s price trajectory.
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The general sentiment around XRP is bullish, with one analyst recently predicting a 7,000% surge soon. The increasing rumors are very likely a response to the poor performance of the digital asset despite Ripple’s numerous partnerships and developments.
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