A recent discovery by the XRP community sheds light on Ripple’s strategy for XRP distribution. SMQKE (@SMQKEDQG), shared a screenshot of a document authored by Ripple employees and a Goldman Sachs representative in 2014.
The document outlines the company’s plan to retain 25% of the 100 billion XRP tokens for operational purposes and potential profit generation. This translates to a reserve of approximately 25 billion XRP, valued at roughly $12.5 billion as of June 2024.
Read Also: Ripple May Dump 400 Million XRP In June. Here’s why
Ripple’s primary revenue stream originates from XRP sales, but not directly to retail investors. Instead, Ripple focuses on institutional investors and market participants. These strategic sales generate the necessary funds to support Ripple’s ongoing operations.
Ripple’s XRP Holdings and Sales History
It’s important to clarify that Ripple’s XRP sales are not a new initiative. The company has been strategically selling XRP for several years, with these sales expected to continue for a limited period.
Currently, Ripple maintains a diversified XRP holding, with approximately 4.87 billion XRP readily available for spending and almost 40 billion XRP in escrow. This brings their total XRP reserve to over 44.36 billion tokens.
Ripple has likely sold over 17 billion XRP since placing 55 billion XRP in escrow in 2017. Before locking these tokens in escrow, the company held around 61.68 billion XRP in spendable wallets.
Distribution for Ecosystem Growth
Based on the document, Ripple’s plan seems to be to allocate the remaining 75% of XRP tokens (approximately 75 billion) to promote the growth and development of the XRP ecosystem. This allocation strategy aims to incentivize market makers, gateways, and users to engage with the Ripple protocol.
This strategy aims to create a robust demand structure for XRP. When combined with huge initiatives like Ripple USD (RLUSD), Ripple’s upcoming stablecoin, and other major partnerships, these could cause a massive increase for XRP due to increased demand and adoption.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: Ripple CTO Reveals His Millions of XRP Holdings and Investment Strategy
While it offers valuable insight into Ripple’s initial XRP distribution strategy, some members of the XRP community believe the company’s approach may have evolved as the document is from November 2014.
Some community members also believe that institutional investors dump their tokens on the community, getting profit while retail investors suffer the consequences of low XRP prices.
The unearthed document provides much-needed insight into Ripple’s XRP distribution strategy, as many disgruntled community members have accused Ripple of suppressing XRP.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.
Follow us on Twitter, Facebook, Telegram, and Google News
