- Prominent lawyer Bill Morgan has defended Ripple Labs, arguing that the company has little influence on XRP prices.
- Ripple has always exerted pressure on XRP with its large sales of tokens as well as its discounted institutional sales.
The XRP community dubbed the ‘XRPArmy’ has been sharing views on XRP price movements and the influence Ripple has on the tokens. A part of the community has been raising concerns about the high supply of XRP and Ripple’s recent activity that influences prices.
The discussion began with Armando, a prominent figure in the crypto community. While sharing his optimistic outlook and hinting at greater achievement. Some who joined the conversation pointed out that there is a conspiracy theory about Ripple dumping XRP tokens.
Prominent lawyer Bill Morgan has responded to these claims, adding Ripple sales were not solely responsible for price movement. He however acknowledged that the sale of large volumes could exert some bearish pressure.
I have never said it is a conspiracy theory. Obviously ripple selling a large volume of XRP into the market can potentially exert some downward pressure on price just as oil producers increasing oil production, can exert downward pressure on the price of oil per barrel if demand… https://t.co/8BBsxnxplJ
— bill morgan (@Belisarius2020) April 7, 2024
Morgan explains that while it’s true that XRP’s price often reflects broader market trends, particularly Bitcoin and Ethereum, some claim Ripple is deliberately manipulating the market by selling XRP (dumping) to keep the price low. This argument overlooks several reasons why this theory is unlikely.
Ripple is known for periodically selling part of its holdings. Ripple holds about 6% of the circulating supply, making it one of the large holders with the potential to influence prices through its sales. Part of the sales made by Ripple help facilitate its operations which are largely aimed at supporting and developing XRP. Some in the community have called on the company for offloading huge stashes that affects the demand and supply.
Additionally, at the start of every month, Ripple unlocks about 1 billion tokens from its escrow accounts. While this is a systematic approach that provides clarity and controls supply, it has led to huge speculation that affects prices.
Fred Rispoli, an attorney based in the U.S. has outlined in a series of posts on X the reasons behind XRP’s low price. As CNF reported, Ripoli claims that the low XRP price is due to huge discounts on XRP sales offered by Ripple Labs Inc. to institutional buyers. Rispoli’s comments follow the SEC’s motion seeking remedies against Ripple for allegedly violating securities laws in the sale of XRP to this class of investors.
At the time of writing, XRP is trading at $0.6167 after a marginal change in the last 24 hours. Investors are celebrating gains of 4.2% on the weekly chart.
Investors are keenly watching the $0.60 support to ensure their bullish momentum is maintained. As CNF reported, Ripple will soon respond to the SEC’s motion that seeks a court order to prohibit XRP sales to institutional investors. Ripple’s legal standoff with the SEC continues to influence XRP’s price action, with the cryptocurrency hovering below the 50-day EMA but above the 200-day EMA.
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