Tuesday, October 26, 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 primary aim is to provide genuine information to cryptocurrency readers because crypto is filled with frauds and scams. Accurate information is scarce to get. So We at TheCryptoBasic 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

Good Games Guild Announces Triple IDO on Seedify, Ignition, MoonStarter

Jakarta, Indonesia, 24th October, 2021, Good Games Guild, a gaming hub that aims to create the largest virtual world economy by optimizing its owned...

YearnNFT Finance: An Advanced Approach to NFTs with Digital Art and Collectibles

Since August, the market sales with respect to NFTs have skyrocketed, where a single NFT sales round up to millions worth. There have been...

The Bank Of Israel Aims To Launch Its CBDC On Ethereum

For now, central banks around the world are still working on developing and testing their own CBDCs, but there are new ones that are...

Russian Central Bank Head Says Russia Is Not Ready To Launch Crypto ETFs

The head of the Bank of Russia, Elvira Nabiullina gave a negative answer to the question about the possibility of trading cryptocurrency ETFs in...

Spanish Banks Anxiously Waiting For Central Bank Approval To Work With Cryptocurrencies

Spanish banks are interested in providing cryptocurrency services directly to clients and expect the Spanish Central Bank will bring regulatory clarity for crypto.

Reddit Intend To Bring Its Non Fungible Token (NFT) Platform

Reddit is looking to hire people for what could become a new platform for non-fungible tokens (NFTs) and digital goods. ...

Second Bitcoin ETF, Valkyrie Bitcoin Strategy ETF (BTF) Started Trading On Nasdaq

On the Nasdaq Stock Exchange under the ticker BTF, a Bitcoin futures ETF from Valkyrie Investments began trading at a price of $25.5.

Subscribe To Our Newsletter

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