Schwartz defended the company’s XRP sales strategy, emphasizing its role in funding ecosystem growth, refuting claims of unlimited token creation, and asserting that Ripple acts in its own interest while addressing concerns over dormant XRP holdings.
Ripple’s XRP Sales Strategy Clarified
Ripple’s Chief Technology Officer (CTO), David Schwartz, has expanded on the company’s approach to selling XRP. In response to comments regarding XRP supply and investor concerns, Schwartz emphasized that Ripple’s sales strategy is structured to support the broader ecosystem rather than merely generate revenue.
According to Schwartz, the sale of XRP plays a crucial role in funding initiatives aimed at increasing adoption. He reassured the community that these transactions are executed responsibly, with measures in place to ensure minimal market disruption. Ripple’s overarching goal, he noted, is to expand XRP’s usability, particularly in cross-border payments, through strategic partnerships and technological advancements.
Response to Criticism
Schwartz’s statements came in response to comments made by Pierre Rochard, Vice President of Research at Riot Platforms. Rochard argued that Ripple has no obligation to act in the interests of XRP holders, stating that investors in the asset are “not investing in Ripple” but instead receiving “tokens created out of thin air.”
Schwartz agreed with Rochard’s assertion, stating,
“100% correct. IMO, Ripple can, will, and should act in its own interest. You should not expect Ripple to act in your interest to the detriment of its own interest or those of its shareholders.”
Addressing Concerns Over XRP Supply
A key point of contention was Rochard’s claim that Ripple could create more XRP at will. Schwartz refuted this, clarifying that the XRP Ledger (XRPL) has built-in safeguards that prevent unauthorized token creation. He cited past incidents in other cryptocurrencies, such as the infamous Bitcoin overflow bug, which once led to an unintended creation of 184 billion BTC. Schwartz noted that XRPL’s invariant checking system is specifically designed to prevent such issues.
XRP has a fixed supply of 100 billion tokens, and unlike some cryptocurrencies, it cannot be inflated. In fact, the total supply gradually decreases over time due to small amounts being permanently destroyed as transaction fees.
Dormant XRP Holdings Resurface
The discussion around Ripple’s XRP reserves intensified following a recent investigation by blockchain analyst ZachXBT, who uncovered a dormant XRP wallet containing over $7 billion worth of tokens, potentially linked to Ripple co-founder Chris Larsen. The report highlighted that addresses activated by Larsen still hold approximately 2.7 billion XRP, with significant transfers made to exchanges in early 2025. However, most of these addresses have remained inactive for over six years, raising speculation that Larsen may have lost access to them.
As scrutiny over Ripple’s XRP holdings continues, Schwartz’s remarks reaffirm the company’s stance that its sales are conducted transparently and in alignment with its business interests.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
