- Ripple’s CTO, David Schwartz, clarifies XRP’s sales approach amid the lawsuit, ensuring transparency and avoiding price influence.
- Safety guidelines unveiled for XRP Ledger’s AMM feature, emphasizing caution and equal asset deposits for optimal security.
Ripple’s Chief Technical Officer (CTO), David Schwartz, has stepped forward to address concerns regarding the firm’s handling of XRP sales. This comes amidst ongoing legal proceedings between Ripple and the U.S. Securities and Exchange Commission (SEC), which have attracted significant attention from investors and enthusiasts alike.
Ripple CTO David Schwartz has openly addressed claims that the company withheld its XRP sales from the public as interest in the SEC vs. Ripple lawsuit continues to grow. Schwartz recognized community worries at a recent X platform discussion and defined Ripple’s token sales strategy. While Ripple could have sold XRP tokens directly on exchanges, he stressed that the company chose a different approach to not affect the price of the altcoin.
Schwartz highlighted Ripple’s practice of sourcing XRP from exchanges to ensure an ample reserve for its on-demand liquidity businesses. He further stated that selling XRP on exchanges offers less accountability than blockchain transactions, implying Ripple’s commitment to transparency in its operations.
Safety Guidelines Unveiled for XRP Ledger’s AMM Feature
In another significant update, Ripple’s CTO, David Schwartz, has unveiled safety guidelines for utilizing the Automated Market Maker (AMM) feature on the XRP Ledger. With the recent launch of the AMM feature, Schwartz emphasized the importance of caution, particularly regarding single-sided deposits into AMM pools. He warned users about potential losses due to insufficient liquidity, commonly referred to as “slippage,” and recommended equal-value deposits of both assets traded by the AMM for optimal safety.
Schwartz noted that small single-sided deposits into liquid AMMs should generally be acceptable despite the associated risks. As the AMM pools mature and attract more arbitrageurs, the risks are expected to diminish with improved liquidity, ultimately reducing slippage.
CAUTION: If you make a single-sided deposit into an AMM that doesn’t have significantly more liquidity than the size of your deposit, you will take a loss in the deposit process.
Whatever tool you’re using typically warns you about this loss as a report of “slippage”. If you see…
— David “JoelKatz” Schwartz (@JoelKatz) March 23, 2024
The introduction of the AMM feature on the XRP Ledger marks a significant step forward in the network’s integration with Decentralized Finance (DeFi). Following extensive developmental efforts by Ripple Labs’ developers, the AMM feature aims to simplify token swapping and facilitate the emergence of decentralized exchanges. This move positions the XRP Ledger to compete in smart contract platforms, traditionally dominated by platforms like Uniswap on Ethereum.
Whale Movements Shake XRP Market
In a series of substantial transactions totaling 75 million XRP tokens, the market saw notable shifts in ownership. Among these transactions, two key players made significant moves. An unidentified address acquired XRP from Upbit, a centralized exchange (CEX), while a prominent XRP whale, known as …Rzn, moved to Bitstamp and Bitso exchanges. The address r3oWusPeT9…RNHs4AWfTv, purchased 30 million XRP, valued at $19 million, injecting considerable liquidity into the market.
As of the time of writing, XRP is trading at $0.616, experiencing a marginal 0.96% dip. Technical analysis reveals critical support at the pivot point of $0.6148, with resistance levels at $0.6455, $0.6709, and $0.7032. The Relative Strength Index (RSI) sits at 60, indicating a slightly bullish momentum, while the 50-day Exponential Moving Average (EMA) at $0.6164 serves as additional support.
Market analysts emphasize the significance of breaching the $0.6450 resistance level. A decisive close above this threshold could trigger a push towards $0.6710, painting a bullish outlook for XRP.
