XRP whales make a move as Ripple defends its sales strategy

Surge in XRP whale activity hinted at potential accumulation or redistribution, raising market speculation
Ripple defended its XRP sales strategy amid concerns over inflation

Whale activity on the XRP network has surged over the past three weeks, sparking speculation about major investors’ strategies. The spike coincided with Ripple CTO David Schwartz defending the company’s right to sell its XRP holdings amid inflation concerns.

With institutional transactions rising, Ripple is insisting its sales won’t destabilize prices. As expected, this has intensified the debate over XRP’s long-term outlook.

Whale activity in XRP sees a steady hike

XRP’s whale activity has steadily risen, with transactions exceeding $1 million hitting their highest levels in months.

While XRP’s price has remained relatively flat, the number of whale transactions surged significantly, particularly from 24 February. The spike on 02 March stands out, marking the highest whale activity in this period – Often a sign of accumulation or redistribution.

Source: Santiment

This trend seemed to suggest that large investors are actively repositioning their holdings.

The sustained whale engagement raises questions about whether XRP is gearing up for a breakout or if liquidity is shifting in response to Ripple’s sales strategy.

Ripple’s ongoing sales strategy and CTO’s response to inflation concerns

As whale activity on the XRP network rises, Ripple’s sales strategy has once again come under scrutiny. Critics argue that the company’s large holdings and periodic sales could dilute XRP’s value, raising concerns about potential inflation.

In response, Ripple’s Chief Technology Officer David Schwartz dismissed these claims, emphasizing that the XRP Ledger is fundamentally resistant to supply inflation.

Schwartz also directly addressed speculation from Riot Platforms VP Pierre Rochard, who suggested that Ripple’s exchange mechanisms might allow for the creation of new XRP.

Source: X

He pointed to past network incidents, including Bitcoin’s infamous value overflow bug, as examples of security flaws that XRPL is designed to prevent.

Schwartz also defended Ripple’s approach, comparing its XRP sales to an artist selling early works. He argued that while investors may expect Ripple to prop up XRP’s price, the company has no obligation to do so.

This position has divided the community – Critics accuse Ripple of prioritizing corporate interests over retail investors, while supporters maintain that the company’s structured sales avoid market destabilization. The ongoing whale accumulation is a sign that institutional players remain confident in XRP’s long-term prospects.

Source: https://ambcrypto.com/xrp-whales-make-a-move-as-ripple-defends-its-sales-strategy-explained/