In a disclosure making rounds in the crypto sphere, particularly the XRP community, the Chief Technical Officer (CTO) at Ripple, David Schwartz, has revealed the reason behind his silence on topics related to the XRP price actions.
Taking to X, the CTO highlighted two reasons attributed to why he hardly comments on XRP’s market actions.
Read Also: XRP Price Is Set For Meteoric Surge? Analyst Confirms 1000% Golden Cross Is Back
His first justification was that his analysis might not be accurate. Also, he noted that lawyers have advised him to always refrain from contributing to debates about XRP’s price trajectories.
In 2018, lots of people argued that a reduction in supply could not lower the market cap and so price would have to go up significantly. The Stellar burn proved that to be nonsense. I wouldn't assume the economics work some particular way without really thinking about it first.
— David "JoelKatz" Schwartz (@JoelKatz) January 8, 2024
Despite not talking explicitly on the said topics, common knowledge about how crypto trading works reveals that the lawyers’ advice aims to prevent the crypto community from misinterpreting Schwartz’s statements about XRP’s price movements.
In a nutshell, Schwartz’s comments or analysis on XRP price might be construed as deliberate efforts to enhance the coin’s adoption.
Schwartz Gives Insight On XRP Escrow Concern
Schwartz was involved in an exchange with an X user who appeared unsatisfied with Ripple’s escrow program. The anonymous X user tweeted, “I love your content, and I’ve been following you for a long time. I think it’s great that you’re honest and sincere in what you publish! But we have to agree that Ripple’s core business at the moment is dumping. They couldn’t resist without it. Am I right?”
In response to the concern, the CTO noted that Ripple has only two options to tackle the issues of XRP tokens locked in the escrow.
Schwartz noted that it is either Ripple continues to hold on to as much XRP as possible or reduces its XRP holdings, adding that Ripple’s initial plan is to reduce its holdings.
Is Burning the Escrow An Option – Schwartz Reacts
Seeming unconvinced with Schwartz’s response, the X user asked if burning the escrow was an option. The CTO responded again, noting that he sees no reason for such, as it could be of no benefit.
Schwartz noted, “I can’t think of any set of events that would lead that to happen that’s even remotely probable. I also don’t think it would have any real benefits.”
Strengthening his take, the CTO referred to an occurrence in 2018. According to him, most people argued that a reduced circulating supply could pave the path for a potential price surge.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: Google Bard Predicts XRP Price If Bitcoin Hits $530,000 As Projected by Bloomberg
Schwartz countered the above sentiment, remarking that Stellar’s burn has proved it is unreliable. He wrote, ” In 2018, many people argued that a reduction in supply could not lower the market cap, and so prices would have to go up significantly. The Stellar burn proved that to be nonsense. I wouldn’t assume economics works in some particular way without first thinking about it.”
Notably, Stellar’s burn in 2019 was below par as it failed to meet price expectations despite the hype that preceded the XLM incineration.
Meanwhile, according to one of our reports, Kristin Dack, a popular XRP community member, stated the risks of incinerating 39 billion XRP in the Ripple escrow wallet. According to her, it allows the community to take over someone else’s XRP, affording more power to the crypto community, which is unfair.
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