A prominent crypto investigator, known as “Mr. Huber” within the XRP community, has reiterated claims that Ripple Labs may often sell its significant XRP holdings to purchase Bitcoin. This allegation has resurfaced as a market analyst, Franco Capello, noted XRP’s lagging performance amidst persistent token unlocks and sales by Ripple.
The conversation began with Mr. Huber highlighting XRP’s increasing supply compared to other major cryptocurrencies such as Bitcoin, Ethereum, Cardano, and Solana. All of these assets have outperformed XRP during the current market upswing.
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In response, Bitcoin proponent Franco Cappello shared a chart demonstrating XRP’s sharp decline against Bitcoin since July 2023, after XRP briefly rallied to $0.93. Cappello argues that Ripple has been using this period to increase its Bitcoin position, fueled by sales of XRP.
Brah, common sense, they 100% hold many assets in their balance sheet, including BTC and they are constantly using the XRP chest to rebalance their portfolio, they knew btc was going to go up because of ETFs and they were so hungry to increase their BTC stash.
— Franco Cappello (@loogart) March 13, 2024
While Cappello presented no concrete evidence for this claim, he asserts that Ripple likely understands the value of Bitcoin and its potential growth, making a conversion from XRP a logical business move.
Investigator Concurs
Mr. Huber, known for his scrutiny of Ripple, agrees with the general sentiment. He maintains that Ripple’s business model inherently necessitates the conversion of XRP into Bitcoin, Ethereum, and other cryptocurrencies. Ripple’s On-Demand Liquidity (ODL) service requires access to various assets, and XRP naturally represents their most liquid holding.
Moreover, Mr. Huber suggests that Ripple may strategically engage in a cyclical process. As XRP liquidity decreases, the company might sell other assets to repurchase XRP to stimulate price momentum.
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History of Allegations
It’s worth noting that Mr. Huber has consistently championed the theory that Ripple persistently sells XRP in favor of Bitcoin. He recently reiterated the potential link between Bitcoin’s price surge and Ripple’s actions, suggesting that the company could be using XRP sales as an interim step to bolster its Bitcoin holdings.
Mr. Huber noted, “Lol ever considered the fact that Ripple has been involved in cryptocurrency since 2012 and that they sold most XRP for BTC the first few years? They might also be the ones pushing Bitcoin up by buying Bitcoin with XRP first, to then sell Bitcoin at its peak to buy XRP, to raise the price to then sell XRP at the higher price?”
It’s important to note that there are mere allegations, and Ripple has not issued any statement to confirm or deny the claims.
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