Even though Ripple is still the largest shareholder of the currency, it has no control over its price. That got the XRP community as a surprise as most of them believed that Ripple has control over the price. According to its CEO Brad Garlinghouse, Ripple as a company is very interested in the success of the currency in the XRP community.
Brad also dismissed claims that Ripple plans to dump XRP currency. He said as much as they have sold large amounts of it does not mean that it’s a dumping strategy. According to him, it is the least of their interests to dump the currency as they want to see it succeed. He further added that most of the XRP are locked in escrows where it is safe and cannot be touched.
Ripple’s move raised eyebrows in the cryptocurrency community as it has been selling its currency in bulk with 2019 having the highest sale of the tokens.
The beginning of 2020 saw the company release XRP worth $200,000 which is an equivalent of I billion XRP from its reserves.
XRP has undergone a roller-coaster end of 2019, in particular, has not been good for the currency and in December alone it experienced two lows. It has however suddenly had a positive gain of more than 9% and regained the $0.20. The XRP community are hopeful that it is the beginning of the XRP price surge.
Ripple CEO compared Ripple to Bitcoin where he said Ripple will never be like Bitcoin where the investors control the price. There will never be a situation whereby the investors dictate the supple of XRP since Ripple is the largest shareholder. He added that the company has a strategy to prevent dumping whereby even if an investor has a big share of XRP, they will have lockups to prevent him from dumping in the market.
Both Bitcoin and Ethereum have had major gains in the recent past both surpassing $7500 and $135 respectively and that has had a bullish effect on Ripple pushing it above $0.1900.
According to an analysis done by crypto experts, the sudden price disparity might be due to a bug in the exchange and the same thing has happened before. The XRP community, in general, is concerned about the price glitch and the possible causes. According to Coinbase, it is unlikely that anyone will benefit from that bug.
Image by WorldSpectrum from Pixabay
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