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Ripple CTO David Schwartz addressed criticism surrounding the release of 1 billion XRP tokens from escrow on December 1, 2024. The token release, worth approximately $1.92 billion at the time, is part of Ripple’s predetermined mechanism to manage XRP supply and support ecosystem development. However, it has led to FUD (fear, Uncertainty, and Doubt) in the XRP community.
Ripple CTO Dismisses FUD Surrounding XRP
The release drew criticism on social media. One post featured an altered image of Ripple CEO Brad Garlinghouse dressed entirely in gold, captioned, “Ripple founders after unlocking and dumping billions of pre-mined #XRP tokens on retail.” Schwartz responded to the post on X with a GIF from Toy Story, captioned, “Haters Everywhere.”
Concerns about XRP sales by Ripple have persisted throughout the year but Schwartz has been quite since a while. In the beginning of 2024, Schwartz addressed these issues, expressing frustration over the widespread misunderstanding of Ripple’s token sales practices. “I don’t really understand why people think it matters so much exactly how we sell XRP,” the Ripple CTO stated in a public response.
pic.twitter.com/QiBDnBBDIn
— David “JoelKatz” Schwartz (@JoelKatz) December 4, 2024
Schwartz also emphasized the transparency of Ripple’s escrow system, which allows the public to monitor token movements. Replying to a post on X, he noted, “Yes, we choose how much to sell. And everyone can see how much XRP comes out of escrow and how much goes back in.”
Ripple’s scheduled token releases are part of an automated process established to manage the supply of XRP while maintaining ecosystem stability. However, some members of the crypto community continue to raise concerns about the potential impact of these releases on XRP’s market value.
The Ripple CTO’s remarks highlight Ripple’s ongoing efforts to clarify misconceptions and maintain transparency regarding its practices. Ripple’s escrow system is designed to release a fixed amount of XRP each month, with unused portions returned to escrow. This system allows public tracking of token allocations and sales decisions.
XRP Price Struggles
Nonetheless, XRP price has continued to struggle after clocking over 400% gains in a month. This comes from uncertainty in South Korea, which serves as a major market for Ripple’s native token. South Korea’s President Yoon Suk Yeol declared martial law on Tuesday, December 3, but revoked it hours later.
However, XRP is still facing the brunt of it with trading volume on South Korea’s Upbit reaching an all-time high. At press time, the XRP price stood at $2.35, down by nearly 10%.