Ripple CTO: 2017 XRP Escrow Restricted — It Cut, Not Freed, Ripple’s Sales
Ripple CTO David Schwartz clarified that the 2017 XRP escrow limited Ripple’s ability to sell XRP rather than enabling monthly dumps. In a public discussion triggered by an investor claim that the escrow allowed Ripple to sell up to 1 billion XRP per month to fund operations, Schwartz said he had opposed the escrow because it locked 55 billion XRP and replaced flexible sales with a fixed monthly release schedule. He noted that prior to 2017 Ripple faced no formal monthly cap on token sales. Schwartz also disputed assertions that scheduled escrow releases meaningfully depressed XRP’s price, arguing markets already price in known, predictable supply events and citing XRP’s price trajectory alongside Stellar (XLM) as comparative evidence. The exchange highlights persistent debate in the XRP community about how escrowed releases and Ripple’s sales affect supply and valuation. For traders: the clarification reduces uncertainty about discretionary large monthly sell-offs (Schwartz says escrow removed that optionality) but keeps supply predictability—meaning scheduled supply is known and likely already factored into XRP’s price. Key keywords: XRP escrow, Ripple sales, David Schwartz, XRP price, supply schedule.
Neutral
The news is neutral for XRP price because it reduces a specific tail-risk while leaving predictable supply unchanged. Positive aspects: Schwartz’s clarification weakens narratives that Ripple retains discretionary power to dump large amounts monthly, which can calm fears of surprise supply shocks and reduce volatility risk premiums. That is supportive for market sentiment. Negative/neutral aspects: the escrow itself still schedules monthly releases (1 billion XRP per month previously reported from a 55 billion lock), so known supply enters the market on a fixed timetable — a factor markets have likely priced in already, according to Schwartz. For short-term trading, the clarification may modestly reduce downward pressure caused by rumor-driven panic and lower event-driven volatility, but it is unlikely to trigger a strong bullish move because no reduction in scheduled supply was announced. For medium-to-long-term traders, the key remains predictable issuance and Ripple’s actual sell-through rate; if Ripple uses secondary-market sales or OTC sales at scale, that could still influence price. Overall impact: removes some uncertainty (bullish sentiment effect) while maintaining supply predictability (offsetting factor), resulting in a neutral net price view.