Ripple CTO Confirms Company Sells XRP Tokens for Revenue and Decentralization
Ripple CTO David Schwartz has confirmed that most of the company's revenue comes from selling its XRP tokens. According to Schwartz, Ripple sells XRP to raise funds and reduce the company's holdings, contributing to greater decentralization.
In a series of tweets, Schwartz clarified misconceptions about XRP and the XRP Ledger. He emphasized that Ripple has two options regarding its XRP holdings: sell or hold. Selling tokens is the better choice, as it promotes decentralization.
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— David "JoelKatz" Schwartz (@JoelKatz) April 13, 2023
8. The circulating supply of XRP is growing by the most common definition(s) of circulating supply. The same is true for BTC, ETC, and many other cryptocurrencies.
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Ripple primarily sells XRP tokens in relation to its On-Demand Liquidity (ODL) solution. In Q4 2022, Ripple sold $226.31 million worth of XRP, compared to $310.68 million in Q3 2022.
Despite introducing the Liquidity Hub recently, Ripple has not included XRP in the product due to regulatory uncertainty surrounding the token, stemming from an ongoing lawsuit with the SEC.
As the issuer of XRP, Ripple is the largest holder of the currency. CoinCarp data shows that the two largest XRP wallets hold over 2.7 billion tokens, accounting for 3.73% of the circulating supply, with many wallets owned by Ripple. Regularly selling part of its XRP holdings contributes to decentralization.
