Bill Morgan, a prominent lawyer, 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 discussion was initiated by Armando, a well-known figure in the crypto community, who shared his optimistic outlook and hinted at potential achievements. However, some participants in the conversation raised conspiracy theories about Ripple dumping XRP tokens. In response to these claims, Bill Morgan clarified that while Ripple’s sales could potentially exert downward pressure on price, it is not a conspiracy theory. He drew a parallel with oil producers increasing production, which can lead to a decrease in oil prices due to higher supply.
Morgan further explained that although XRP’s price often reflects broader market trends, such as Bitcoin and Ethereum, the theory of Ripple deliberately manipulating the market through XRP sales (dumping) is unlikely for several reasons. Ripple periodically sells a portion of its holdings, as it holds about 6% of the circulating supply, making it one of the major holders with the potential to influence prices. These sales also support Ripple’s operations and the development of XRP. However, some community members have called for Ripple to offload its significant holdings, believing that it affects the demand and supply dynamics.
In addition to regular sales, Ripple unlocks approximately 1 billion tokens from its escrow accounts at the beginning of each month. While this systematic approach provides transparency and supply control, it has led to speculation that impacts prices.
Fred Rispoli, a U.S.-based attorney, has outlined the reasons behind XRP’s low price in a series of posts. He claims that the low price is a result of significant discounts offered by Ripple Labs to institutional buyers. Rispoli’s comments come in the wake of the SEC’s motion seeking remedies against Ripple for alleged securities law violations in their sale of XRP to this specific class of investors.
As of now, XRP is trading at $0.6167 with a slight change in the last 24 hours. Investors are celebrating a 4.2% gain on the weekly chart. They are closely monitoring the $0.60 support level to ensure the continuation of their bullish momentum. Ripple is expected to respond to the SEC’s motion soon, which seeks a court order to restrict XRP sales to institutional investors. The legal battle between Ripple and the SEC continues to influence XRP’s price movements, with the cryptocurrency currently trading below the 50-day EMA but above the 200-day EMA.