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Ripple CEO on XRP Institutional Sales Sparks Manipulation Concerns – What He Had to Say

Ripple CEO on XRP Institutional Sales Sparks Manipulation Concerns – What He Had to Say

  • Ripple’s CEO explains XRP sales strategies, addressing manipulation concerns openly.
  • XRP community reacts to pricing stability with mixed opinions and speculation.
  • Ripple’s institutional lockups and restrictions aim to maintain market stability.

The crypto community has been abuzz following Ripple CEO Brad Garlinghouse’s recent comments on XRP’s pricing and institutional sales. In a recent interview, Garlinghouse provided clarity on how XRP is sold to financial institutions, stating that Ripple does not offer any preferential pricing.


He likened the situation to financial institutions such as MoneyGram moving money from U.S dollars to Mexican pesos. He noted that they do this at market value without any “sweetheart deal” in between. Garlinghouse explained that for the case of XRP, when large-scale institutional transactions are conducted, such as purchases of $10 million worth of XRP, Ripple enforces specific conditions to maintain market stability.


This includes lockup periods and volume restrictions, which prevent institutional investors from selling large quantities of XRP too quickly. According to Garlinghouse, these measures are designed to avoid market disruption and prevent any party from flooding the market with XRP, which could lead to significant price fluctuations.


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Community Reaction: Manipulation Fears Surface

While Garlinghouse explained Ripple’s precautions to maintain a stable market, some in the crypto community, like Paul Roussel, have raised concerns. Roussel suggested that the long periods of price stagnancy and decline seen with XRP, despite the frequent positive news about the project, indicate potential manipulation.


He argued that other projects with far less utility and fewer updates would have experienced greater price increases. Roussel speculated that Ripple could be working with its partners to allow them to accumulate XRP at a pre-negotiated price, further stoking fears of manipulation.


On the other hand, Erik Plott, another voice within the XRP community, offered a counterpoint. Plott compared XRP’s steady growth to the hype-driven surges seen in meme coins. He argued that XRP’s approach, which avoids speculative pumps and dumps, is a sign of the project’s long-term value and legitimacy. Rather than engaging in manipulative market tactics, Ripple, according to Plott, is focused on maintaining compliance and creating real utility for XRP within the global financial ecosystem.


Ripple’s Strategy to Prevent Market Disruption

Ripple’s strategy surrounding institutional sales and its pricing approach has sparked an ongoing debate. While Garlinghouse’s comments clarify the company’s efforts to ensure market stability, questions about manipulation persist.


As Ripple continues to navigate the complexities of the cryptocurrency market, its emphasis on maintaining a transparent and sustainable model remains central to its long-term success. The growing utility of XRP for cross-border payments could eventually become the deciding factor in its continued adoption, regardless of the volatility that may characterize its price movements in the short term.


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