XRP has resumed the new week with fresh criticism from an X user who has condemned Ripple for its XRP-related activities, triggering reactions from David Schwartz, the CTO Emeritus of Ripple.
The debate, which started about two days ago, has seen the critic throw jabs at Ripple for its continuous XRP sales, stirring concerns about the impact of the moves on XRP holders.
Ripple’s XRP sales stir controversy
The critic has made claims that XRP holders are responsible for Ripple’s growing expansion, noting that it is XRP holders that are funding Ripple’s growth.
In his assertions, the critic emphasized Ripple’s consistent XRP sales, arguing that the move is of no benefit to XRP holders; rather, it is solely targeted at benefiting the company’s shareholders.
Notably, the critic claimed that the proceeds from steady XRP sales are used to support Ripple’s consistent acquisitions, developments and stock buybacks to only benefit shareholders at Ripple rather than XRP holders.
To back his claims, the critic noted that when companies sell both tokens and equity, they create two competing groups of stakeholders, whose interests may not always align. He explained that XRP holders and Ripple’s shareholders are the competing groups in this case, pointing out that only the latter is enjoying the financial gains.
Schwartz clarifies misconceptions on XRP sales
While the debate lasted for about two days, David Schwartz joined in, dismissing the narrative by clarifying how known market factors impact the price of the concerned cryptocurrency.
According to Schwartz, the ongoing sale of XRP by Ripple is a common practice that often reflects on the market price of the asset. He noted that the move does not selectively favor anyone, and it is not a disadvantage to its holders.
He mentioned that the move is good for holders because it made the price of XRP go down so that they could buy at cheaper rates, allowing potential gains for everyone.
