Bill Morgan Clarifies Ripple’s $238M XRP Sales: Debunking the Dumping Myth

The post Bill Morgan Clarifies Ripple’s $238M XRP Sales: Debunking the Dumping Myth appeared first on Coinpedia Fintech News

Legal expert and pro-XRP enthusiast, Bill Morgan, stepped in to address concerns surrounding Ripple’s $238M XRP sales in December 2023. His detailed response sheds light on crucial aspects related to Ripple’s XRP sales and their potential impact on the market.

Clearing Misinformation about Ripple’s XRP Sales 

In December 2023, Ripple’s net sales of XRP amounted to a staggering 238 million units, equivalent to $142 million. This figure is notably three times the average monthly sales for the company, as earlier reported by Coinpedia News. The substantial sales have led to increased speculation within the crypto community regarding Ripple’s intentions 

Bill Morgan starts by challenging what he calls a “false narrative” suggesting that Ripple is dumping a lot of XRP. To back his point, he provides strong evidence, referring to the inflation rate tied to the circulating supply resulting from the release and sale of XRP from escrow, calculated at 7.86%.

Morgan goes on to emphasize that, even though this inflation rate is relatively high, it doesn’t convincingly clarify why XRP’s price would be significantly negatively affected.

Insights from the SEC vs Ripple Case

Drawing from the SEC vs Ripple case, Morgan provides key insights. He notes that the evidence presented during the lawsuit reveals a surprising fact: Ripple’s contribution to total XRP volume in the market was less than half of 1%. 

Moreover, he highlights the SEC’s argument that Ripple used methods like putting XRP in escrow and buying some back to help keep the price of XRP stable. Morgan says this is quite different from the big, attention-grabbing claim that Ripple is dumping lots of XRP.

Holding and Selling XRP

Morgan tackles the criticism directed at Ripple for both holding too much XRP and selling it. He points out that this doesn’t make much sense because there’s a fixed amount of XRP that won’t increase, and Ripple’s actions, like buying some back and putting some in escrow, are more like a careful plan than just dumping everything.

While the crypto community tries to understand the intricacies of XRP sales and their effects, Morgan’s thoughts question existing ideas and set the stage for a more educated conversation.