Ripple’s CTO Addresses XRP Sales Approach and Unveils AMM Safety Guidelines
In the midst of the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), Ripple’s Chief Technical Officer (CTO), David Schwartz, has stepped forward to provide clarity and transparency on the company’s handling of XRP sales.
Addressing Community Concerns
Schwartz recognized the concerns within the community regarding Ripple’s XRP sales practices. He acknowledged that the company could have sold XRP tokens directly on exchanges, but instead opted for a different approach to avoid directly impacting the price of the altcoin.
Ensuring Transparency
Schwartz highlighted Ripple’s practice of sourcing XRP from exchanges to maintain an ample reserve for its on-demand liquidity businesses. He emphasized that selling XRP on exchanges offers less accountability than blockchain transactions, underscoring Ripple’s commitment to transparency in its operations.
Unveiling AMM Safety Guidelines
In another significant development, Schwartz unveiled safety guidelines for utilizing the Automated Market Maker (AMM) feature on the XRP Ledger. He stressed the importance of caution, particularly regarding single-sided deposits into AMM pools, warning users about potential losses due to insufficient liquidity, commonly referred to as “slippage.”
Schwartz recommended equal-value deposits of both assets traded by the AMM for optimal safety. He noted that small single-sided deposits into liquid AMMs should generally be acceptable, despite the associated risks, and as the AMM pools mature and attract more arbitrageurs, the risks are expected to diminish with improved liquidity, ultimately reducing slippage.
Integrating with DeFi
The introduction of the AMM feature on the XRP Ledger marks a significant step forward in the network’s integration with Decentralized Finance (DeFi). This move positions the XRP Ledger to compete in the smart contract platform landscape, traditionally dominated by platforms like Uniswap on Ethereum.
Whale Movements and XRP Market Dynamics
The XRP market has witnessed notable shifts in ownership, with substantial transactions totaling 75 million XRP tokens. An unidentified address acquired XRP from the centralized exchange Upbit, while a prominent XRP whale, known as …Rzn, moved to the Bitstamp and Bitso exchanges.
Technical analysis reveals critical support at the pivot point of $0.6148, with resistance levels at $0.6455, $0.6709, and $0.7032. Market analysts emphasize the significance of breaching the $0.6450 resistance level, as a decisive close above this threshold could trigger a push towards $0.6710, painting a bullish outlook for XRP.
