The influence of Ripple’s periodic sales on the price of XRP has long been a controversial topic among members of the crypto community. Recently, financial expert Mickle addressed this issue. He refuted accusations that Ripple intentionally suppresses the price of XRP through its monthly sales.
Ripple Sales and Deletion Accusations
Members of the crypto community are divided over the impact of Ripple’s periodic XRP sales. As the issuer and largest holder of XRP, the company releases one billion tokens from its escrow accounts each month. Of this amount, 80% is re-escrowed, while the remaining 20% is sold to fund the company’s operations.
The Good Morning Crypto podcast recently conducted a survey on these movements. The investigation revealed that nearly 67.7% of the 1,964 participants believe that these periodic sales reduce the price of XRP. These results highlight the persistent distrust within the community regarding Ripple’s intentions.
The Real Impact of Ripple Sales on the Crypto Market
Mickle responded to the accusations. The expert notably stated that the impact of Ripple’s XRP sales on the price of the crypto asset is minimal. He explained that Ripple sells its tokens strategically to avoid a glut in the market. “Ripple’s sales represent an insignificant fraction of XRP’s daily trading volume,” he said. Mickle also pointed out that these sales are primarily directed to institutional clients and strategic investors. This move is intended to foster long-term adoption rather than short-term price fluctuations.
Mickle added that the XRP market is liquid and large enough to absorb these sales without significant impact. Additionally, the expert mentioned that bitcoin price fluctuations influence XRP’s price much more than Ripple’s periodic sales. “Like most crypto assets, XRP’s price is correlated with bitcoin’s,” he observed. He also noted that occasional disconnects can occur, as was the case last week.
In short, Ripple is being wrongly blamed for XRP’s price fluctuations. Data shows that other factors play a more significant role in this trend. Mickle therefore recommends investors to focus on these aspects to better understand XRP’s price movements.
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