Ex-Ripple Exec Shares What XRP Burning Means, But Does It Influence Price?
The former Ripple CEO has been the subject of ongoing debate The XRP token is on firewhich sheds light on their true impact on asset prices. In a heated discussion on X, the official challenged the XRP community that has long believed that the burning tokens directly influence their immediate price action or automatically cause a sharp price rally.
Ex Ripple CTO Reveals The Real Impact Of The XRP Burnout
David Schwartz, former Chief Technology Officer (CTO) of Ripple, has taken to X to share new information about XRP burnout and its direct impact on price. Notably, Schwartz’s statements come in the wake of recent backlash and criticism from it Ripple’s recent $750 million share purchase.
In a March 12 post, an anonymous XRP community member known as ‘XRP Launch’ on X tagged top Ripple executives, including Schwartz, CEO Brad Garlinghouse, President Monica Long, and CLO Stuart Alderoty. User it asked the company’s recent share purchase, asking why Ripple would prioritize this approach over plans that directly benefit XRP holders.
He urged the management to consider burning XRP currently held in escrow rather than pursuing stock buybacks that benefit Ripple as a company. On a sarcastic note, he added that perhaps the escrow can’t be burned, as doing so would drive the price of XRP above $1.39.
Answering the words, Schwartz shared price chart showing the historical performance of both XRP and Stellar (XLM). The chart highlights volatility in both commodities, with significant price increases in some months and subdued action in others. The former Ripple CTO then challenged an XRP member to point out where, on the chart, XLM had burned half of its total.
Notably, Stellar conducted a massive token burn in November 2019, wiping out half of its supply. Schwartz argued that, despite the large reduction in supply, the move did not have an immediate, direct impact on the price of XLM. The chart did not show a meaningful price increase throughout November of that year or the following months, with the only visible upward movement coming from February to March of the following year.
Schwartz back off against the user’s claim of burnout minus XRP can cause a price rally, arguing that token burning has no direct impact on asset performance or valuation. However, he admitted that such actions, in some cases, can have an indirect influence on market dynamics.
Concerns About RLUSD And RWA’s Effect On XRP Awakening
As Schwartz pointed out misconceptions about XRP burning, the debate quickly changed Ripple’s stablecoin, RLUSDand XRP Ledger’s (XRPL) Tokenization of Real-World Assets (RWAs).. A member of the community known as Spade he reasoned that if burning tokens did not add value to XRP, then, by extension, initiatives such as RLUSD, RWAs, and XRP’s role as a bridge asset it may also provide little or no direct benefit to the value of the cryptocurrency.
He it was argued that the only immediate effect these activities can have on the ecosystem is to burn XRP, which, according to Schwartz’s argument, will not have a positive effect on the price. Spade also asserted that the money generated by using RLUSD does not increase the value of XRP. In his opinion, buying and holding XRP can increase its value. And with him criticism the broad narrative that XRP is “liberating money,” argues that this notion is not conducive to asset price growth.
The featured image was created with Dall.E, a chart from Tradingview.com
Planning process because bitcoinist focuses on delivering well-researched, accurate, and unbiased content. We maintain strict sourcing standards, and each page is diligently reviewed by our team of senior technical experts and experienced editors. This process ensures the integrity, relevance, and value of our content to our readers.
