Ripple CTO Denies Secret Plan to Boost XRP Price Amid Holder Frustration
XRP holders are expressing growing discontent as the cryptocurrency’s price continues to falter, with Ripple Chief Technology Officer David Schwartz addressing concerns by stating there is “no secret plan” to artificially inflate the token’s value.
XRP Faces Significant Price Decline
XRP has experienced a sharp downturn, falling more than 12% in the past week to reach $1.07, its lowest point since August. This performance lags behind other major cryptocurrencies, with Bitcoin down 3%, Ethereum down 6%, and Solana down 7% over the same period. The token is currently trading around $1.08, a significant drop from its mid-August high of $1.70.
Institutional Outflows Signal Weak Demand
Adding to the pressure, spot XRP Exchange Traded Products (ETFs) recorded outflows totaling $10.42 million on November 9. The previous week saw minimal activity, with only one outflow of $529,000 on November 2, indicating a lack of institutional buying interest and potentially less resistance for sellers.
Community Seeks Clarity on Ripple’s Strategy
The persistent price weakness has prompted calls from the XRP community for clarity from Ripple executives. One community member directly questioned Ripple CEO Brad Garlinghouse and CTO David Schwartz about their strategies and whether loyal, long-term holders could anticipate any returns.
In response, David Schwartz stated, “I’m not sure what you think we haven’t already told you. We talk about our plans constantly. There’s no secret plan we aren’t telling you about.”
Market Forces and XRPL Adoption Key to XRP Value
Schwartz elaborated that XRP’s price is largely influenced by broader market trends rather than specific developments within the XRP Ledger (XRPL). He also dismissed the notion that XRP’s use for transaction fees alone would be a significant driver of its price, noting, “I don’t think anyone knowledgeable has suggested that XRP’s use as gas would be a significant driver of the price of XRP.”
However, Schwartz maintained that XRP’s value should increase in tandem with the success and adoption of the XRPL network. “I really do think it’s hard to believe we will end up in a world where XRPL is successful, but XRP fails to capture a good fraction of that value,” he said. The token’s ultimate value, he explained, will be contingent on the growth and widespread utilization of the XRPL network.
Higher XRP Price Could Enhance Liquidity
Schwartz also highlighted potential benefits of a higher XRP price, suggesting it could improve the cost-effectiveness of liquidity and reduce slippage for large transactions. This implies that an increased token value could not only benefit investors but also enhance XRP’s efficiency as a liquidity asset for substantial payments.
