Ripple’s XRP Sales Program Under Scrutiny Amid Price Suppression Allegations”
Amid claims of price suppression, Ripple’s XRP sales program is currently under audit, shedding light on the company’s utilization of trading bots from GSR. The ongoing lawsuit filed by the Securities and Exchange Commission (SEC) has prompted Ripple’s Chief Technology Officer (CTO) to clarify their decision to employ external trading resources.
CTO David Schwartz rationalizes Ripple’s use of GSR trading bots for XRP sales, emphasizing the strategic move to involve external entities to mitigate risks of internal trading accusations and regulatory scrutiny.
Despite these explanations, skepticism persists within the XRP community, sparking controversy surrounding Ripple’s sales practices and their impact on XRP prices.
Amidst the ongoing audit stemming from Ripple’s legal battle with the SEC, concerns have been raised regarding the company’s use of GSR trading bots for the XRP sales program. This revelation follows the emergence of legal documents shedding light on Ripple’s program practices, notably the email exchange between market maker GSR and the Ripple team.
The Logical Basis for Trading Bot Usage
In response to increasing scrutiny, David Schwartz provides a insightful perspective on Ripple’s decision to utilize GSR trading bots for XRP sales. Schwartz clarifies that despite lacking a specific vision of the contents of the highlighted email discourse with GSR, Ripple’s delegation of sales to external entities was a strategic move.
Speculations suggest that this step aimed to minimize accusations of internal trading and price manipulation. Schwartz affirms that by entrusting entities like GSR with sales, Ripple sought to ensure compliance, avoid direct market participation, and consequently reduce regulatory fallout risks.
Schwartz highlights the absence of specific allegations of price manipulation in the SEC’s charges against Ripple, indicating the legitimacy of their selling practices.
Response Falls Short in Convincing XRP Community
Despite Schwartz’s efforts to provide clarifications, XRP members remain unconvinced. Ongoing discussions highlight the need for transparency and accountability in Ripple’s sales practices, as the broader audit aims to enhance XRP’s value.
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It is worth noting that shortly after the suspension of XRP sales through GSR’s trading bots, XRP witnessed a significant surge to its all-time high. Speculations arose within the community, suggesting that previous sales may have contributed to the initial price reduction. This speculation underscores the delicate balance between market dynamics and external factors influencing XRP valuation.
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