Ripple CTO: Company Could Cut XRP Sales If It Builds Alternative Revenue
Ripple CTO David Schwartz said the company could reduce or halt routine XRP sales if it develops sustainable non-XRP revenue streams. Ripple originally received 80 billion XRP and placed 55 billion into escrow in 2017, releasing 1 billion XRP monthly; up to 80% of each monthly release (about 800 million XRP) can be sold to fund operations. Sales have long worried investors due to potential liquidation pressure on XRP, though XRP frequently tracks broader crypto market moves. In a community discussion, Schwartz dismissed the idea that Ripple’s USD-backed stablecoin RLUSD would replace XRP’s liquidity role. He identified alternative revenue sources — payments services, licensing blockchain solutions, and institutional adoption — as ways to generate operating income without selling XRP. For traders: successful revenue diversification could lower routine sell pressure and reduce XRP volatility over time, which is potentially bullish for the token; however, XRP sales remain possible while Ripple requires operational funding, so short-term selling risk persists. Keywords: Ripple, XRP sales, revenue diversification, RLUSD, crypto trading.
Neutral
Short-term: Neutral-to-slightly-bearish risk remains because Ripple retains the ability to sell released escrow XRP to fund operations, and markets may react to any announced or realized sales. The ongoing possibility of monthly liquidations keeps downward pressure risk on XRP during periods of company funding needs. Long-term: Potentially bullish if Ripple successfully builds sustainable non-XRP revenue streams (payments services, licensing, institutional products). Reduced reliance on routine XRP sales would likely ease recurring sell pressure and lower volatility, improving price support. Overall impact on price depends on execution and timing — diversification talk reduces structural risk but does not eliminate near-term selling, so the balanced assessment is neutral.