Ripple CEO "No reason to harm the market"...Breaks silence on XRP escrow controversy

▲ XRP/AI-generated image

Ripple CEO Brad Garlinghouse once again asserted the legitimacy of asset management through the XRP escrow system.

According to a report by virtual asset media outlet U.Today on April 29 (local time), Garlinghouse explained in a recent interview that the escrow mechanism, which releases 1 billion XRP each month, is a key device that enhances market predictability. Garlinghouse added that Ripple's possession of a large amount of XRP actually demonstrates the company's strong commitment to the long-term success of the ecosystem.

He firmly dismissed concerns about market manipulation raised by some investors due to Ripple's large holdings. Garlinghouse emphasized, "Ripple is the largest stakeholder in the XRP ecosystem, and there is absolutely no reason for us to act in a way that harms the market." Garlinghouse clarified that the supply is systematically adjusted through the process of a significant portion of the released volume from escrow being locked up again.

Currently, Ripple operates by re-locking unused portions of the 1 billion XRP released from escrow at the beginning of each month into new escrow contracts. This method helps prevent drastic fluctuations in XRP supply and ensures price stability. Garlinghouse predicted that Ripple's strategy serves as a key factor in building trust among institutional investors and will be an important foundation for the future expansion of cross-border payment solutions.

Garlinghouse expressed confidence that Ripple's transparent asset management, along with the technical superiority of the XRP Ledger, will ultimately serve as grounds for increasing the likelihood of victory in its ongoing legal battle. Ripple has focused on proving the legality of its asset sales methods and escrow system even during the lawsuit with the U.S. Securities and Exchange Commission. Market participants expect these remarks to stabilize the sentiment of XRP investors amidst regulatory uncertainty.

Ripple's asset management strategy is considered one of the most transparent cases in the virtual asset industry and acts as a pillar supporting stable market growth. Garlinghouse plans to continue strengthening communication with ecosystem members and dedicating himself to expanding the practical utility of XRP.

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