Bill Morgan shares a document showing that Ripple does not dump XRP on the market.
Some crypto community members have continued to allege that Ripple has consistently dumped XRP on the market. Recall that in line with its token unlock initiative, Ripple unlocked 1 billion XRP from escrow on May 1.
A few hours later, the Silicon Valley tech company locked back 700 million tokens to escrow while keeping the remaining 300 million XRP to cater to the demands of its On-Demand Liquidity (ODL) business.
Despite Ripple’s claim, some crypto community members have bashed the company for planning to dump 300 million XRP on the market. These critics assert that such a move would hurt the price of XRP.
Morgan Says Ripple Doesn’t Dump XRP on the Market
Interestingly, Bill Morgan, an Australia-based pro-XRP lawyer, took to Twitter yesterday to defend Ripple. In a tweet yesterday, attorney Morgan asserted that Ripple’s XRP sales are focused on its ODL customers.
For context, ODL is Ripple’s payment solution that leverages XRP for cross-border settlements. XRP is used as a bridge between two fiats, thus making it easier for any currency to be exchanged for another.
The pro-XRP lawyer explained that Ripple’s ODL-related XRP sales are completed in seconds, with a neutral impact on the price of the sixth-largest cryptocurrency.
Per attorney Morgan, Ripple purchases a lot of XRP to meet the growing demand of clients using its ODL solution. He buttressed his points by attaching a page from Ripple’s latest quarterly market report (Q1 2023). Ripple noted in the report that its total XRP sales, net of purchases, were $361.06 million compared to the $226.31 million it recorded in the previous quarter. According to the company, it has continued to sell XRP in connection with ODL transactions.
Furthermore, the Silicon Valley-based tech company reiterated that since 2020 it had sourced XRP from the open market to make the cryptocurrency available for its growing XRP business.
Regarding Ripple’s comment about its XRP sales, attorney Morgan noted that the blockchain company does not dump XRP on the market as “Ripple has to purchase XRP from the open market to meet growing ODL demands.”
Ripple also buys a lot of XRP. In fact, in its latest quarterly market report, Ripple disclosed that it has to purchase XRP from the open market to meet growing ODL demand. This very significant but unnoticed disclosure surely shows Ripple is not dumping on the market /2 pic.twitter.com/6XNYsap2WE
— bill morgan (@Belisarius2020) May 2, 2023
Meanwhile, critics usually ignore Ripple’s claim and spread FUDs about the fact that the company is dumping XRP on the market whenever it releases some XRP coins from escrow, Morgan noted.
“If people read the SEC’s summary judgment material, they would see that the SEC asserts that the escrow and other measures Ripple took were to buttress XRP’s price,” said Morgan.
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