Well-known lawyer Bill Morgan has come to the defense of Ripple Labs, arguing that the company has minimal impact on the prices of XRP. Ripple has been known to exert pressure on XRP through its large token sales and discounted sales to institutional buyers. The XRP community, also known as the ‘XRPArmy,’ has been actively discussing the influence of Ripple on XRP prices, with some expressing concerns about the high supply of XRP and Ripple’s recent activities.
The conversation started with Armando, a prominent figure in the crypto community, who shared his optimistic outlook on XRP and hinted at future achievements. Some participants in the conversation brought up a conspiracy theory alleging that Ripple is dumping XRP tokens. In response to these claims, lawyer Bill Morgan emphasized that Ripple’s sales were not solely responsible for price movements. However, he acknowledged that the sale of large volumes could have some bearish impact on the price.
Morgan clarified that he does not consider the theory of Ripple manipulating the market to be a conspiracy. He drew a parallel with oil producers increasing oil production, which can result in downward pressure on oil prices. Similarly, Ripple’s large volume of XRP sales can potentially exert downward pressure on the token’s price. Morgan pointed out that XRP’s price often reflects broader market trends, particularly those of Bitcoin and Ethereum.
Morgan also addressed the argument that Ripple intentionally sells XRP to keep the price low. He highlighted several reasons why this theory is unlikely. Firstly, Ripple periodically sells a portion of its holdings, as it holds about 6% of the circulating supply, giving it the potential to influence prices. These sales help support and develop XRP. However, some community members have called for Ripple to reduce its sales, as they believe it affects the demand and supply dynamics.
Additionally, at the beginning of each month, Ripple unlocks approximately 1 billion tokens from its escrow accounts. While this practice provides transparency and control over the token supply, it has led to speculation that impacts prices.
Fred Rispoli, a U.S.-based attorney, has outlined the reasons behind the low price of XRP in a series of posts. He claims that the low price is a result of Ripple Labs offering significant discounts on XRP sales to institutional buyers. Rispoli’s comments come in the wake of the SEC’s motion seeking remedies against Ripple for allegedly violating securities laws in its sale of XRP to this investor class.
Currently, XRP is trading at $0.6167, showing a marginal change in the last 24 hours. Investors have seen gains of 4.2% on the weekly chart and are closely monitoring the $0.60 support level to maintain their bullish momentum. Ripple is expected to respond to the SEC’s motion soon, which seeks to prohibit XRP sales to institutional investors. The legal battle between Ripple and the SEC continues to influence XRP’s price movement, with the cryptocurrency trading below the 50-day Exponential Moving Average (EMA) but above the 200-day EMA.