Ripple (XRP) Fears a Runaway of Investors and States It Does Not Speculate

Ripple (XRP) Fears a Runaway of Investors and States It Does Not Speculate

The crypto community has discussed from time to time that Ripple is manipulating the market. Analysts noted that Ripple dumped its tokens on the market when the coin’s rate began to rise. The head of Ripple has issued a denial of these statements.

Market players noticed several times that as soon as the XRP token began to rise, the Ripple management sold part of their tokens. Ripple owns more than half of all XRP tokens. In 2017, Ripple made a promise that it would not sell all of its tokens right away, but the company does sell large amounts of XRP from time to time.

The decrease in the price of the token makes the platform more accessible to institutional investors and partners. Moreover, Ripple has always pointed that partnership and using of the XRP platform for financial services and large organizations are important for it. But it is critical for investors that the fundamental usefulness of the platform pushes up the price of the token, then the investment would be profitable.

Allegations that Ripple affects the market value of the XRP token causes a loss of interest in the token and an outflow of investors. Apparently, this process is already underway, and Ripple is worried about the runaway of investors. This is exactly the idea behind the interview of the head of Ripple at the LA Blockchain Summit. The Los Angeles Summit is one of the most notable events in the crypto world. In an interview, Ripple chairman of the board Chris Larsen argues that XRP price is only correlated with the market and other leading cryptocurrencies, BTC and ETH:

“If you look at the XRP Ledger, XRP the decentralized digital currency, most of what happens in that ecosystem is really correlated with Bitcoin and Ethereum.”

Larsen argues that Ripple is not focused on speculation, but on other issues:

“Is it a store of value? Is it maybe just holding it as something that we value in a digitized, globalized future? Is it speculation? That’s just all happening in its own economic reality, completely separate from what Ripple is focused on.”

Suspicions of market manipulation have also appeared as the XRP platform has been considered as the basis for a central bank digital currency (CBDC). On this score, Chris Larsen was evasive:

“One central bank digital currency could be so different from another one, not just the currency behind it, but again – what are they going to let it be used for? The most radical would be consumers can go directly to their central bank … I just don’t see that happening, so there’s probably some form of working with banks, maybe wallets.”

Obviously, Ripple is trying to calm down the community and proposes to invest in XRP. And it will develop the functionality of its platform for sure.