Ripple’s CTO, David Schwartz, has addressed concerns about the company’s approach to selling XRP amidst the ongoing legal battle with the SEC. He has assured transparency and emphasized that Ripple chose not to sell XRP directly on exchanges to avoid influencing the altcoin’s price. Instead, the company sources XRP from exchanges to ensure a reserve for its liquidity businesses, highlighting the accountability and transparency of blockchain transactions.
In addition, Schwartz has unveiled safety guidelines for using the AMM feature on the XRP Ledger. The recent launch of this feature marks a significant step in integrating the network with DeFi. Schwartz has emphasized caution when making single-sided deposits into AMM pools and has warned about potential losses due to insufficient liquidity, also known as “slippage.” He recommends equal-value deposits of both assets for optimal safety, with the risks expected to decrease as the pools mature and attract more arbitrageurs.
The XRP market has seen significant movements as notable players make substantial transactions. An unidentified address acquired XRP from Upbit, while a prominent XRP whale moved to Bitstamp and Bitso exchanges, injecting liquidity into the market. Currently, XRP is trading at $0.616, with critical support at $0.6148 and resistance levels at $0.6455, $0.6709, and $0.7032. Market analysts emphasize the importance of breaking the $0.6450 resistance level for a bullish outlook.
Overall, Ripple’s CTO’s statements provide clarity on the company’s sales approach and emphasize safety guidelines for using the AMM feature on the XRP Ledger. The market movements highlight the liquidity injection and the importance of key resistance levels for XRP’s future performance.