In a recent Twitter exchange shedding light on Ripple’s influence on the price of XRP, Matt Hamilton, former Director of Developer Relations at Ripple, provided illuminating insights. Hamilton’s comments centered on Ripple’s XRP holdings and their connection to price fluctuations, revealing a more nuanced perspective.
Highlighting the scale of Ripple’s XRP holdings, Hamilton clarified that the company holds approximately 48 billion XRP coins, making it the largest cryptocurrency holder. He emphasized that most of these assets are held in escrow, with only a proportion sold each month, while the remainder is reinvested in other agreements.
Contrary to concerns that Ripple’s substantial holdings could exert undue influence on the market, Hamilton pointed out that the company’s impact is minimal in light of XRP’s daily sales volume. With approximately 4 billion tokens traded globally daily, Ripple’s influence becomes inconsequential.
Hamilton delved further into the underlying dynamics affecting XRP pricing, attributing the token’s fluctuations primarily to market forces and the success of Bitcoin (BTC). This perspective highlights the importance of broader market conditions and investor sentiment, rather than solely relying on Ripple’s actions.
Moreover, Hamilton explicitly stated that Ripple manages neither XRP nor the XRP Ledger (XRPL). To drive home this point, he suggested that if the community deemed it necessary, Ripple’s entire XRP reserves could be burned, emphasizing the company’s commitment to community interests.
Hamilton assuaged investors’ worries by responding to concerns about Ripple’s large token holdings potentially jeopardizing XRP’s viability. Pointing out that Ripple controls just one validator, he proposed that the community could exercise its power by voting for an amendment that would render it illegal for the corporation to act against its interests. This proposal further reinforces that the XRP ecosystem operates independently of Ripple’s control.
Hamilton’s insights offer a fresh perspective on the relationship between Ripple, XRP, and price fluctuations. While Ripple maintains a significant XRP holding, its impact on the market is minimal due to the daily trading volume. By clarifying Ripple’s limited control over XRP and advocating for community-driven decisions, Hamilton reassures investors and underscores the decentralized nature of the XRP ecosystem.
