Friday, July 30, 2021
Home Crypto News Market What Impact It Will Have On Ripple Price If The Company Burns...

What Impact It Will Have On Ripple Price If The Company Burns Its 48 Billion XRP

- Advertisement -

Ripple could be forced to burn all of its XRP holdings if the community decides to vote for it. David Schwartz, the company’s CTO, confirmed this.

David Schwartz, Ripple’s chief technology officer, has admitted that the community could force the company to burn its 48 billion XRP tokens, regardless of whether Ripple agrees with the decision or not.

Ripple currently owns half of the total XRP supply and has come under fire in the past for selling out tokens. In a Twitter thread, Schwartz confirmed that the community could vote for Ripple to burn XRP tokens, saying the blockchain is “very democratic.”

There would be nothing Ripple could do to prevent this.

Changes in the XRP ledger require an 80% approval rate from the ledger’s validators. In June, the validators of the XRPL voted for the adoption of a new amendment, known as the “cheque amendment,” without Ripple’s support.

The change introduces users’ ability to issue checks to each other for a predetermined amount of XRPL that can be redeemed at a later time.

In November last year, Stellar reduced its total coins from 105 billion XLM to 50 billion.

At that time, Schwartz publicly opposed Stellar’s coin burning. When Stellar burns more than 50% of XLM tokens, Schwartz wrote:

 

How would the XRP Price react if Ripple burns its tokens?

In December 2017, Ripple created 55 Escrows with 1 billion XRP each. One of these 1 billion Escrows would expire every month and return the 1 billion XRP to Ripple. Ripple could then use this XRP or put a certain amount into a new escrow account.

There are Ripple accounts that currently hold 51,794,328,522 XRP, which, according to Adam Riese, means that there are still 48,196,516,786 XRP in the Escrows. Ripple has already sold 6,803,483,214 XRP.

But what would happen to the XRP price if Ripple burns its half token supply.

The XRP rate of currently 0.61 would find an equivalent equilibrium at 1.22 dollars. 

But it is doubtful that Ripple would ever knock XRP into the trash can for under 14 billion dollars.

Read Also:

- Advertisement -
Jakkkhttps://thecryptobasic.com/
Owner of TheCryptoBasic. Involved in cryptocurrencies for more than five years, Love to trade, and write on cryptocurrencies. My basic aim is to provide genuine information to cryptocurrencies readers because crypto is filled with frauds and scams. True information is very rare to get. So I will be providing accurate information about cryptocurrencies topics, that users can trust.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Recent News & Articles

Michael Saylor “Bitcoin Is Digital Real Estate And Is Now Held By More Than 114 Million People, Making It The Most Widely Held Financial...

Microstrategy CEO Michael Saylor always shows that he is a faithful supporter of Bitcoin. Microstrategy currently holds 105,085 BTC. Michael Saylor is among the...

Bitpay Adds Support For Litecoin And Newegg Becomes The First Merchant To Accept LTC Through Bitpay

BitPay, the world’s largest provider of Bitcoin and cryptocurrency payment services, today announced support for Litecoin in the BitPay Wallet app. Consumers can buy, store and...

Yoroi Wallet To Release Dapp Connector That Will Allow Interactions Between Users And Dapps On Cardano Blockchain

Cardano (ADA) smart contracts are coming soon and so is its infrastructure advancing. window.coinzilla_display = window.coinzilla_display ||...

Ethernity Chain to Drop NFT of NAS’s Performance in South Africa on the 20th Anniversary of the end of Apartheid

Johannesburg, South Africa, 29th July, 2021, Ethernity Chain is proud to announce another unique NFT collection is coming to its ecosystem. This aNFT (Authenticated...

Wall Street Bitcoin Adoption Continues As State Street The Second-Oldest Continually Operating United States Bank To Offer Crypto Services

State Street Corporation, an American financial services and bank holding company, headquartered in Boston with operations all over the globe to Offer Crypto Services...

57,000 Bitcoin Left Crypto Exchanges In 24 Hours Showing Bullish Sentiments Along With 465,000 Bitcoins Transferred Between Coinbase And Unknown Wallets

BTC saw the largest outflow of funds in one day from crypto exchanges. Nearly 57,000 bitcoins were left crypto exchanges.  ...

According To PayPal CEO, Paypal Crypto Super App Is Code Complete And Will Launch Soon

PayPal, World Top payment provider company, has stated that its users will not need to wait longer for great crypto functionalities app coming soon.

Subscribe To Our Newsletter

Get Updated with All The latest Crypto News, Articles, Reviews, Analysis and much more. Delivered Every Monday.

follow us in feedly