Amid growing concerns over Ripple’s ongoing XRP sales, a top executive has hinted at the conditions that could prompt the company to stop selling the token.
Over the years, members of the XRP community have repeatedly voiced frustration over Ripple’s sales of XRP on the open market.
Concerns About Ripple’s XRP Sales
For context, Ripple received an initial allocation of 80 billion XRP and has consistently sold portions of these holdings to fund its operations. In 2017, the company introduced an escrow system that locked up 55 billion XRP and scheduled the monthly release of 1 billion tokens.
Ripple then sold a portion of these released tokens to cover operational expenses. Despite later adjustments to the escrow structure—under which up to 80% of the released tokens, or roughly 800 million, may be sold—many XRP investors continued to raise concerns, arguing that steady sales negatively affect the token’s price action.
Although these complaints have eased in recent years, particularly after several analysts showed that XRP largely moves in line with the broader crypto market, some investors still blame Ripple. This sentiment tends to resurface most strongly during periods of heightened market downturns.
David Schwartz Shares How Ripple Can Stop Selling
As XRP continues to face downward pressure and familiar concerns resurface, we revisit a previous commentary from Ripple CTO David Schwartz on what could reduce the company’s need to sell its XRP holdings.
During a discussion, Schwartz explained that Ripple could ease selling pressure by developing alternative revenue streams. In his view, by generating income from sources other than XRP sales, the company would no longer need to liquidate its token holdings, as it has in the past.
Schwartz made this point while responding to a community member who argued that Ripple’s RLUSD stablecoin poses a risk to XRP. According to the user, because RLUSD is backed 1:1 by the U.S. dollar, Ripple could eventually shift its focus and utility away from XRP and toward the stablecoin, insulating itself even if XRP’s price were to collapse.
However, Schwartz rejected this line of reasoning. Instead, he emphasized that the more sustainable solution lies in building additional sources of revenue, thereby naturally reducing Ripple’s dependence on XRP sales.
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