Ripple’s CTO, David Schwartz, addresses concerns regarding the company’s approach to XRP sales during the ongoing lawsuit with the SEC, ensuring transparency and avoiding price manipulation.
To enhance security, safety guidelines are introduced for the AMM feature on the XRP Ledger, emphasizing caution and equal asset deposits.
David Schwartz, the Chief Technical Officer of Ripple, has come forward to address the concerns raised about the company’s handling of XRP sales. This comes at a time when Ripple is engaged in a legal battle with the U.S. Securities and Exchange Commission (SEC), which has garnered significant attention from investors and enthusiasts.
In a recent discussion on the X platform, Schwartz openly responded to claims that Ripple had kept its XRP sales hidden from the public. He acknowledged the worries of the community and explained Ripple’s strategy for token sales. He emphasized that instead of directly selling XRP tokens on exchanges, the company opted for a different approach to avoid impacting the altcoin’s price.
Schwartz highlighted that Ripple acquires XRP from exchanges to ensure a sufficient reserve for its on-demand liquidity businesses. He further mentioned that selling XRP on exchanges provides less transparency compared to blockchain transactions, indicating Ripple’s commitment to operational transparency.
In another significant development, David Schwartz has unveiled safety guidelines for utilizing the AMM feature on the XRP Ledger. With the recent introduction of the AMM feature, Schwartz stressed the importance of caution, particularly when making single-sided deposits into AMM pools. He warned users about the potential losses that could occur due to insufficient liquidity, commonly referred to as “slippage,” and advised equal-value deposits of both assets traded by the AMM for optimal safety.
Schwartz stated that although there are associated risks, small single-sided deposits into liquid AMMs are generally acceptable. As the AMM pools mature and attract more arbitrageurs, the risks are expected to decrease with improved liquidity, ultimately reducing slippage.
The integration of the AMM feature on the XRP Ledger marks a significant advancement in the network’s integration with Decentralized Finance (DeFi). Developed by Ripple Labs’ developers, the AMM feature aims to simplify token swapping and facilitate the emergence of decentralized exchanges. This positions the XRP Ledger to compete with smart contract platforms, which have traditionally been dominated by platforms like Uniswap on Ethereum.
The XRP market experienced notable shifts in ownership due to a series of substantial transactions involving 75 million XRP tokens. Two key players made significant moves, with an unidentified address acquiring XRP from Upbit, a centralized exchange, and a prominent XRP whale, known as …Rzn, moving to Bitstamp and Bitso exchanges. The address r3oWusPeT9…RNHs4AWfTv purchased 30 million XRP, valued at $19 million, injecting significant liquidity into the market.
As of the time of writing, XRP is trading at $0.616, experiencing a marginal 0.96% dip. Technical analysis indicates 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) is at 60, suggesting a slightly bullish momentum, while the 50-day Exponential Moving Average (EMA) at $0.6164 serves as additional support.
Market analysts emphasize the importance of surpassing the $0.6450 resistance level. A decisive close above this threshold could trigger a push towards $0.6710, painting a bullish outlook for XRP.