A network red cryptocurrency trader proposed that Ripple (XRP) should destroy half of the XRP. This proposal has been supported by some XRP enthusiasts. They hope that by reducing supply, it is easy to push up the price of this token so that every participant can make a profit.
The petition was launched on August 5th by trader Crypto Bitlod on August 5th. There are currently more than 500 signatures. The trader has more than 100,000 fans on Twitter. The petition suggested that Ripple will no longer release XRP to the encryption market and said it will help prices rise.
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"Rippo continues to sell us billions of XRP, causing prices to plummet! Of course, we know that XRP is a reliable currency with great potential, but this behavior needs to stop!"
Much of this is due to Ripple's XRP holdings, which account for 50% of the total supply. The company regularly sells XRP in the market to stimulate ecosystem growth. These initiatives have rapidly increased the supply of XRP, putting downward pressure on prices.
The Ripple team has not yet commented on this wish.
Initially, the company's hosting system held 55 billion XRP (55% of its 100 billion supply) and was split into 1 billion accounts. Each account is unlocked once a month, and some or all of the XRP is sold by Ripple. The company recently announced that its sale will continue based on judgments about the market environment, but the speed may slow down – hopefully this will maintain the price of XRP.
But the community is not satisfied with this.
An XRP enthusiast said:
“The community has finally begun to act against Ripple’s sell-off or eliminate the risks posed by the billions of XRP inflows to the market. We must be vigilant and take back what belongs to us.”
The biggest obstacle to this petition is that Ripple can make a lot of money from selling its $11.5 billion XRP, and destroying these XRPs is not beneficial. Although the company and its employees may hold XRP, this part of the added value is unlikely to offset the loss of XRP being destroyed in hosting.
In addition, the sale of Ripple is likely to be beneficial to this cryptocurrency because it can stimulate the XRP ecosystem. For example, Ripple's cooperation with MoneyGram (although it is not clear whether MoneyGram bought XRP) led to its use of the xRapid service for the transfer business, which uses XRP for cross-border payments. For the XRP ecosystem, this is certainly more valuable than simply reducing supply.
Some traders point this out. They believe that it is more sensible to look at Ripple's managed systems from a long-term perspective (which will not be completely emptied until the end of 2023) because it will help build an ecosystem. An XRP enthusiast said:
“The more they sell, the more dispersed their positions are. Dispersion means that (XRP) is less likely to be manipulated.”
But for now, Ripple will continue to firmly control XRP.