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The CEO of blockchain payment network Ripple says the company doesn’t want to “dump” the associated XRP cryptocurrency despite selling huge amounts of it.
In an interview with CNN on January 5, Brad Garlinghouse added a new contention to the debate over Ripple’s relationship with XRP, which has gained 10% in the past 24 hours.
Garlinghouse: Ripple “can’t control XRP price”
“In the XRP community, Ripple is the largest owner and the point I made is that we are the party most interested in the success of the XRP ecosystem,” he told the network.
On the subject of how Ripple manages that property, Garlinghouse said:
“Yes, Ripple owns a lot of XRP, we are very interested in the success of XRP, but the dumping allegations, it is not in our interest to do so. […]. We would never do that and in fact, we’ve taken steps to lock down most of the XRP we own under warranty so we can’t touch it. “
The comments impact with Ripple’s market moves in 2019 and before. As Cointelegraph reported, the company has long sold XRP in bulk, with last year getting rid of more tokens than ever.
In early 2020, the company released 1 billion XRP, worth approximately $ 200 million, to be escrow as part of a planned operation.
Meanwhile, XRP itself hit over two-year lows in December, dipping below $ 0.20 and at one point trading 96% below its all-time high of $ 3.40. A recovery, including 9% gains in the past 24 hours, has since returned XRP / USD above the $ 0.20 barrier.
7-day XRP price chart. Source: Coin360
Garlinghouse continued to surprise. Despite Ripple’s token share, he firmly denied that the company could affect the XRP price.
“Oh no,” he protested when asked about the possibility, comparing the situation to major Bitcoin (BTC) investors:
“Ripple cannot control the price of XRP any more than whales can control the price of Bitcoin.”
Large buyers of XRP would “hypothetically have restrictions”
However, he said, Ripple would not respond well to other major investors who own a significant share of the XRP supply. In what appeared to be a desire to influence the market, Garlinghouse positioned Ripple as the leading token holder for the future.
“There are times when we work with institutional investors or we could say, ‘Hey, we want to buy $ 10 million of XRP,’ and we would have lockdowns to keep them from dumping the market,” he continued.
In conclusion, the executive stated that these interventions are nonetheless “hypothetical”:
“We don’t want another party to buy a lot of XRP and dump it on the market, so hypothetically we would have restrictions on what they could sell and how often, and usually these are based on volume in the market.”
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