With the world accepting crypto currency more and more, the digital money market is going to be the next revolutionary step in the economy. There are a number of cryto companies which are working with the blockchain technology. Now, among the big names in the industry, you may have heard of bitcoins and Ripple. Brad Garlinghouse who is the CEO of Ripple Labs which is the company behind the Ripple payment protocol and exchange network said that the company can’t influence the price of the XRP token. This happened despite the fact that it is the biggest holder.
Ripple is the third-largest crypto currency by market capitalization. The CEO revealed that he doesn’t believe Ripple Labs can influence the price of XRP. In an interview with CNN, Brad Garlinghouse said: “Ripple can’t control the price of XRP any more than the whales can control the price of Bitcoin.”
The CEO did acknowledge that the Ripple crypto currency is the third largest in the world and the biggest XRP price in the market. Still he argued that this just means it’s the “most interested party in the success of the XRP ecosystem.”
Ripple does own a lot of XRP. Therefore, they are also interested in the crypto currency success. However, the blockchain payment network company does not want to “dump” its associated XRP crypto currency it currently owns on the market. The company even plans to put a lock on most of the XRP they own in escrows so that even they can’t touch it. There has been cases where people have been accused of selling the XRP tokens it holds the market to generate revenue. According to the CEO, these events and accusations don’t take ripple’s best interest in account as a big holder. Garlinghouse has stated that Ripple has worked with institutional investors who are looking to buy large amounts of XRP. In case that does happen and the plan goes smoothly, the company has lock-ups to prevent them from dumping on the market. This means that hypothetically Large XRP buyers would have restrictions as well. This is done keeping in mind that large investors don’t end up dumping a large amount of XRP in the market after buying this. The company can have hypothetical restrictions on them so that this can be prevented from happening. It is estimated that India wants crypto and the demand is every increasing.
As per a report made by Cointelegraph, ripple has been selling off large bulk of XRP in the market. In fact, recently it has sold off or rid itself of more token than it has ever been seen. In the start of 2020, the company released 1 billion XRP from escrow as a part of a planned operation of the company. This was the time when XRP hit the more than two-year lows dropping below $0.20. Even though the company has such a big hold of XRP, Garlinghouse denies that the company can influence the XRP price.
The crypto currency market is an unpredictable one. Even though it has potential, not everyone is onboard with the whole idea. Countries are slowly adopting or at least opening up to the idea of a digital currency slowly. It can be o that soon the crypto market sees the first major breakthrough in the market. And when it does, companies like Ripple who hold the major holdings in this care, will flourish.