Ripple CTO Reveals Escrow Actually Limited XRP Sales Flexibility

Source: CryptoNewsNet Original Title: Ripple Could Have Sold as Much XRP as It Wanted, CTO Says Original Link: https://cryptonews.net/news/altcoins/32187115/

Background

Ripple CTO David Schwartz recently clarified that the establishment of the escrow actually prevented Ripple from selling as much XRP as it wanted.

“Before the escrow, Ripple could have sold as much XRP as it wanted every month. And I opposed the decision to implement the escrow precisely because I didn’t see enough upside to justify giving up that flexibility.”

The Escrow Mechanism

In 2017, Ripple locked 55 billion XRP into a series of escrows to release 1 billion per month. This was marketed as a way to create predictability and certainty for investors.

The escrow was a restriction. Before 2017, Ripple had total access to their holdings and could have sold more than 1 billion a month if it chose.

Schwartz’s Opposition

Schwartz reveals he actually voted against the escrow. Why? He valued operational flexibility. He didn’t think the “upside” was worth the “downside” (Ripple losing the ability to access their capital freely). This contradicts the narrative that Ripple executives favor the escrow.

Market Impact

Moreover, the Ripple CTO has opined that traders have already adjusted the price of XRP today to account for those future sales.

“And if you think about it, everything people know will happen and expect to happen should already be built into the current price,” he said.

This suggests that the market has already priced in the predictable monthly XRP releases, making the escrow’s impact on current valuations potentially minimal.