Ripple Exec Denies XRP Price Manipulation

In a recent exchange on X, Ripple’s Chief Technology Officer David “JoelKatz” Schwartz responded to allegations suggesting that Ripple had been manipulating the price of XRP through its programmatic sales.

Schwartz categorically denied these accusations, stating that Ripple had ceased its programmatic sales of XRP as of the first quarter of 2023, as detailed in Ripple’s Q1 2023 XRP Markets Report.

He further elaborated that Ripple had always endeavored to minimize the price impact of such sales, expressing confusion over the alleged motive behind such manipulation claims.

Skepticism and clarifications

The announcement, however, was met with skepticism from parts of the XRP community. An X user under the handle @GenesisLedger accused Schwartz of misleading the community about the cessation of programmatic sales, pointing out a reduction in Ripple’s XRP holdings by over 700 million in Q4, 2023.

Schwartz refuted these claims by stressing Ripple’s transparency in its sales reports, arguing that the information provided was both clear and highlighted to avoid any misunderstandings.

Despite this, accusations persisted regarding Ripple’s disclosure of its sales methods post-programmatic sales, with critics pointing to a lack of transparency in on-demand liquidity (ODL) numbers post-Q1, 2023, and questioning the effectiveness of Ripple’s payment solutions.

Explaining programmatic sales and ODL transactions

In response to requests for clarification, Schwartz provided detailed explanations of the terms “programmatic sales” and “sales in connection with ODL.”

He described programmatic sales as market-making activities on exchanges with a net bias toward selling, intended to facilitate liquidity. ODL sales, on the other hand, are tied to Ripple’s payment solutions, where XRP is used as a bridge currency for international payments, such as converting to Mexican pesos for local transactions.

Schwartz’s clarification aimed to demystify Ripple’s operational strategies and their impact on XRP’s market dynamics, emphasizing the company’s commitment to transparency and the minimization of market impact.

Source