Ripple (XRP ) News : Former Ripple Executive Debunks XRP Price Influence, Unveils Genuine Key Factors

The post Ripple (XRP ) News : Former Ripple Executive Debunks XRP Price Influence, Unveils Genuine Key Factors appeared first on Coinpedia Fintech News

Matt Hamilton, the former Director of Developer Relations at Ripple, provided fresh insights into the relationship between Ripple’s holdings and the price fluctuations of XRP. Hamilton debunked misconceptions and shed light on key factors that influence the digital asset’s value, offering a new outlook for the XRP community. 

How important are these external factors in determining the price of XRP? Are there any other factors you believe have a substantial influence? Let’s find out!

In a series of Twitter exchanges, Hamilton specifically addressed Ripple’s significant XRP holdings, noting that the company possesses approximately 48 billion tokens. However, he also pressed the fact that the majority of these tokens are held in escrow contracts. These contracts release a portion of the XRP monthly, with only a fraction being sold by Ripple.

The remaining tokens are reinvested into new escrow contracts. This clarification challenges the notion that Ripple’s holdings have a substantial impact on the market, as the global daily sales volume of XRP stands at around 4 billion tokens. 

While one user quoted, “Wait.. 4B daily and they have 48B?” this is a problematic figure to analyze. 

External Factors at Play: All Ripple Holdings Could be Burned? 

Contrary to popular belief, Hamilton stressed that Ripple’s influence on XRP’s price movements is relatively limited. Instead, he highlighted market forces and the performance of Bitcoin (BTC) as major drivers of XRP’s value. This aligns with the broader cryptocurrency market, where Bitcoin often serves as a significant market indicator. 

On the other hand, while addressing concerns about Ripple’s control over XRP, the analyst pointed out that neither XRP nor XRPL is under Ripple’s authority. To underscore this, he suggested that if the community deemed it necessary, all of Ripple’s holdings in XRP could be burned. Importantly, this signifies that the XRP community has the power to vote for an amendment that would effectively remove Ripple’s influence if the company were to act against the community’s interests. 

“The price of XRP mostly follows the test of the market and mostly follows BTC.”

Overall, Hamilton’s insights provide a fresh perspective on the dynamics of the XRP ecosystem. By clarifying Ripple’s holdings, and their limited impact on the market, and emphasizing external factors such as market forces and Bitcoin’s performance, he encourages the XRP community to consider a broader perspective when analyzing price movements.