A notable Crypto Enthusiast named Crypto Bitlord has recently come up with an interesting proposal suggesting Ripple burn half of its reserved supply of XRP. The decrease in the XRP supply would shoot up the coin’s prices more easily, reasons the proposal. The proposal, thanks to its logical purpose, has earned support from plenty of XRP fans as well.
Crypto Bitlord started this petition on 5th August 2019 via his Twitter handle that has over 102,000 followers. The petition so far has got more than 300 signatures suggesting Ripple to not release its XRP supply anymore in the cryptocurrency market as that will eventually pump the coin’s price.
As you know, Ripple continue dumping billions & billions of $XRP on the market, crashing the price!!!
— ฿ITLORD 01 (@Crypto_Bitlord) August 5, 2019
The petition notes that Ripple dumps billions of XRP continuously that ends up crashing its price. Adding further, the petition stresses that though many a solid token considers XRP with great potential, it’s time now that Ripple stops doing this.
The major blame here is put on the XRP held by Ripple, which is half of the total XRP supply. Ripple keeps selling some of it from their holdings into the cryptocurrency market time to time for boosting the ecosystem’s growth. Undoubtedly, such a move by Ripple grows the XRP supply. However, it does affect the prices in a downward direction.
Originally, 55 billion XRP were held by the escrow system which divided the reserve among one billion accounts. Ripple sells all or some of the XRP held in the account by unlocking each account every month. As per Ripple’s recent announcement, the firm will continue with such sales, proportionate with the market conditions, but they will sell at a reduced rate, hoping to safeguard the XRP price. The announcement, however, has not soothed the community.
Though XRP fans are asking otherwise, it must be noted that Ripple selling XRP at specific intervals packs a bunch of benefits for the company than burning it. One recent example is Ripple’s collaboration with MoneyGram, the world’s second-largest money transfer entity. MoneyGram has begun utilizing xRapid, Ripple’s cross-border payment platform powered by XRP. This move has added value to the ecosystem of XRP which a smaller XRP supply can’t offer.
Some traders also have a futuristic perspective agreeing with Ripple’s long-term vision to develop a strong ecosystem. After all, the more they will sell XRP, the more the coins will get distributed and the more it’s divided, the less it will be exposed to any sort of manipulation, points out one XRP fan.
Although the XRP fans are circulating and signing the petition, whether it yields positive outcomes or not remains to be seen.