• Fri. Jun 21st, 2024

Ripple CTO Dismisses Benefits Of Burning Escrowed XRP Tokens

Steve Kornacki

BySteve Kornacki

Jan 9, 2024

Escrowed XRP Debate

Ripple’s Chief Technology Officer, David Schwartz, has sparked a heated debate within the XRP community after claiming that burning escrowed XRP tokens is a futile effort. Addressing concerns raised by XRP holders regarding Ripple’s management of its XRP holdings, Schwartz opined that burning the escrowed XRP tokens doesn’t yield any significant benefits.

The debate unfolded as community members expressed apprehensions about Ripple’s consistent monthly releases of XRP from escrow, speculating that these releases exert pressure on the token’s price. “GPDBurnTheEscrow,” A pseudonymous community member, raised concerns about whether Ripple’s primary focus was consistently selling XRP tokens.

Schwartz explained that one of Ripple’s primary objectives regarding their XRP holdings is to maintain or actively reduce its circulating supply. He iterated that the company’s initial plan since its inception was to diminish its XRP reserves swiftly.

Token Burning And Market Realities

To bolster his argument, Schwartz referenced a previous case involving Stellar’s XLM in 2019. At that time, there were concerns regarding XLM’s supply, leading the Stellar Development Foundation to burn 55 billion XLM tokens.

Contrary to expectations, the price of XLM experienced only a marginal rally before swiftly declining by 12% by November 2019. Schwartz utilized this Stellar case to prove that burning tokens doesn’t influence its price.

He desired to delve further into the analysis but refrained due to legal constraints. Despite Schwartz’s attempt to engage constructively, “GPDBurnTheEscrow” claimed that there’s pessimism within the XRP community.

In response, Schwartz emphasized two enduring beliefs: the rationality of prices, which already factor in expectations, and the market’s negative perception of radical changes.

Renowned Analyst Reaffirms XRP’s Growth Potential

Despite recent market fluctuations, Bobby A., a prominent analyst, maintained his earlier prediction, targeting a range of $8 to $13 for XRP’s price. In a recent tweet, the analyst expressed increased confidence in XRP’s potential, emphasizing the long-term bullish trend and advising investors to remain patient regardless of daily market swings.

Bobby A highlighted that XRP has already entered its bullish phase but cautioned against impulsive buying due to FOMO (fear of missing out). Notably, the analyst released his initial forecast of $8 to $13 for XRP’s price shortly after a US court ruled that XRP is not a security.

Furthermore, Bobby A boldly claims that his initial targets might even be conservative, suggesting the possibility of XRP exceeding the projected $13 price point. If XRP reaches the $8 target from its current value of $0.5666, it would signify a growth rate of 1,310%.

In addition, should it reach the $13 price level, the potential return on investment would be 2,195%. It is worth noting that XRP has a historical track record of experiencing significant gains within short periods, notably the 60,000% surge from $0.006361 to an all-time high within just 12 months.

Steve Kornacki

Steve Kornacki

Steve Kornacki, a respected author at Big Trends Signals, uses his deep online trading acumen to create comprehensive guides and balanced reviews, empowering traders in their digital pursuits.

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