Ripple CTO David Schwartz confirmed that his company is shrinking its XRP reserves. Reports indicate that the company sold $226.31 million worth of altcoins in Q4 2022.
Ripple CTO says biggest revenue comes from altcoin sale
Joining a heated discussion about XRP on Twitter, Schwartz confirmed that Ripple generates the most revenue from the sale of XRP. According to Schwartz, this strategic move also aims to reduce the company’s XRP reserve and further contribute to decentralization.
In a recent thread of tweets, Schwartz tried to address some of the misconceptions surrounding XRP and the XRP Ledger. It was claimed that Ripple is still actively selling its XRPs, and these sales account for 98% of the Silicon Valley company’s revenue.
In response, Schwartz noted that the phrase is true to “sell” in a broader sense. He further emphasized that Ripple has only two options regarding its XRP assets: sell or hold. However, it has been agreed that selling tokens is the better choice as it contributes to decentralization.
As Schwartz explains, “Broadly speaking, selling XRP accounts for most of Ripple’s revenue.”
How much XRP did Ripple sell?
Specifically, Ripple is liquidating XRP tokens in conjunction with its On-Demand Liquidity (ODL) solution, which caters to multiple assets in nearly 40 payment markets. Ripple’s XRP report for Q4 of 2022 revealed that the tech firm sold $226.31 million worth of XRP in the quarter alone. This figure was $310.68 million in the third quarter of 2022.
Schwartz’s latest statement was directed at tweets from @ScamDetective5 questioning why Ripple decided to sell XRP instead of using it for its Liquidity Center solution. It should be noted that Ripple recently launched Liquidity Hub, but removed XRP from the product. The blockchain company cited the regulatory uncertainty surrounding XRP due to the SEC lawsuit as the reason behind this.
Schwartz responded to these criticisms by saying, “There is nothing more Ripple can realistically do with its XRP, and the general consensus is that it would be better for Ripple to hold less XRP.”
How about the XRP price?
XRP started a rally from $0.356 on March 16 to reach $0.585 on March 29, posting gains of 64%. Since then, the pullback was stopped at the $0.48-0.5 support area. Analysis of the lower timeframe XRP chart suggests another move has started towards the $0.6 resistance.
The formation of higher lows (HL) after the $0.5 support was defended, coupled with a bullish outlook on the lower timeframe meant that a break above $0.53 was likely for XRP. According to technical analysis, a retest of this level could present a buying opportunity.
One of the developments that directly affect the XRP price is the SEC lawsuit, which is expected to end in 2023. cryptocoin.com In this article, we have included the expectations regarding the latest situation from the case.
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