Bill Morgan, a prominent lawyer, has come to the defense of Ripple Labs, stating that the company has limited control over the prices of XRP. Ripple has been known to put pressure on XRP through its large token sales and discounted sales to institutional buyers.
The XRP community, known as the ‘XRPArmy,’ has been actively discussing the price movements of XRP and the influence that Ripple has on the token. Some members of the community have raised concerns about the high supply of XRP and Ripple’s recent activities that impact prices.
The conversation started with Armando, a well-known figure in the crypto community, expressing his optimistic outlook and suggesting the potential for greater achievements. However, some participants in the conversation mentioned a conspiracy theory that claims Ripple is dumping XRP tokens.
In response to these claims, Bill Morgan clarified that he does not consider it a conspiracy theory. He acknowledged that the sale of a large volume of XRP by Ripple could potentially exert downward pressure on the price, similar to how increased oil production by oil producers can lower the price per barrel if demand remains constant.
Morgan further explained that while the price of XRP often reflects broader market trends, such as Bitcoin and Ethereum, some people believe that Ripple intentionally manipulates the market by selling XRP to keep the price low. However, Morgan provided several reasons why this theory is unlikely.
One factor is that Ripple periodically sells a portion of its holdings. With about 6% of the circulating supply, Ripple is one of the major holders that can influence prices through its sales. These sales help support and develop XRP. However, some community members have criticized Ripple for offloading large amounts of XRP, which affects the demand and supply dynamics.
Additionally, at the beginning of each month, Ripple unlocks approximately 1 billion tokens from its escrow accounts. While this systematic approach provides transparency and control over the supply, it has led to speculation that impacts prices.
Fred Rispoli, a U.S.-based attorney, has also commented on the reasons behind the low price of XRP. He claims that Ripple Labs Inc. offers significant discounts on XRP sales to institutional buyers, which has contributed to the low price. Rispoli’s remarks come in the wake of the SEC’s motion to take action against Ripple for allegedly violating securities laws in its sale of XRP to institutional investors.
As of now, XRP is trading at $0.6167, experiencing a slight change over the past 24 hours. Investors are celebrating a 4.2% gain on the weekly chart.
Investors are closely monitoring the $0.60 support level to ensure the maintenance of their bullish momentum. Ripple will soon respond to the SEC’s motion seeking a court order to prohibit XRP sales to institutional investors. The legal battle between Ripple and the SEC continues to influence the price action of XRP, with the cryptocurrency trading below the 50-day EMA but above the 200-day EMA.
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