XRP Struggles Amid Hidden Token Dump By Cofounder

A Ripple co-founder quietly sold $764 million worth of XRP over seven years. The operation, although legal and transparent, reignites tensions within the community. As crypto struggles to keep pace with its competitors, this revelation reopens the debate on the impact of internal sales on the token’s performance.

A Planned Liquidation

While David Schwartz left his position as CTO of the company , Chris Larsen, the co-founder of Ripple, carried out the gradual liquidation of $764 million worth of XRP according to information collected on the blockchain.

This sale took place under well-defined conditions , namely :

• Total volume : $764 million worth of XRP liquidated over a seven-year period ;

• Sales strategy : a programmed sale, carried out through regular and small transactions, aimed at avoiding sharp market fluctuations ;

• Blockchain execution : the sales were carried out visibly and transparently, allowing the entire community to analyze the process ;

• Method used : this approach is often used by crypto project founders, who hold significant token reserves, to avoid too strong an impact on prices.

Although these sales were legal and followed a predefined framework, they nonetheless fueled discussions within the XRP community. Indeed, some investors believe that this gradual sale exerted constant pressure on the crypto price, thus preventing it from fully capitalizing on market upswings.

This sales management also conflicts with Ripple’s escrow program, which releases tokens to the market at a regular pace.

The Implications of this Liquidation

XRP investors, especially the longest-standing ones, have expressed frustrations on forums and social networks. Many point out that the token’s growth has been hindered by regular internal sales, coupled with Ripple’s long legal battle against the SEC.

The regularity of these liquidations has, in some eyes, hampered the token’s appeal to new investors, who might have turned away from XRP due to the impression of a “surplus supply” constantly injected into the market.

The question of Ripple’s role in this dynamic is also fundamental. While the sale of XRP by its founders has raised concerns, the company’s attitude towards managing its reserves remains a central issue.

With an escrow program of several billion tokens, and a fund release mechanism linked to specific objectives, the company is in a delicate position : should it adjust its practices to meet the growing demand for greater transparency, while maintaining its long-term development strategy? This is a question that could well be the key to reigniting crypto growth.

The XRP price therefore seems closely tied to how Ripple will manage both its internal sales and its image within the community. While the regularity of these liquidations can be interpreted as a risk mitigation strategy in the short term, the long-term consequences on investor confidence could prove more complex to manage. In this light, the company may consider rethinking its practices to foster more sustained growth and better image management, especially facing an increasingly fierce competitive environment.