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1. Why can't Ripple sell all XRP?
- Fixed emission: A total of 100 billion XRP have been issued, of which ~48 billion are still held in escrow. Monthly, Ripple unlocks 1 billion tokens for sale, but even at current rates, this will take decades.
- Control over liquidity: In 2021, the sale of 200 million XRP (0.2% of the emission) crashed the price by 15%, prompting Ripple to introduce an Escrow program to stabilize the market.
- The goal is infrastructure, not speculation: Ripple's main income comes from corporate solutions (RippleNet, ODL), not from token sales. For example, in 2023, 85% of the company's revenue came from bank partnerships.
2. Why does a high price of XRP not solve the emission problem?
- Mathematical imbalance: Even at a price of $10 for XRP, selling all 100 billion tokens would require a market capitalization of $1 trillion — which is twice the current market cap of Bitcoin. Such volume is impossible without integrating XRP into global payment systems.
- Limited liquidity: Large sales of Ripple automatically reduce demand. For example, in 2023, the company sold only 0.5% of its reserves to avoid panic.
- XRP is a tool, not an asset: For Ripple, the token serves as 'fuel' for transactions in RippleNet, not as an investment asset. Their profits depend on the number of transactions, not the price of XRP.
3. Who benefits from the rise in the price of XRP?
- Institutional partners: Banks (Santander, Bank of America) save up to 60% on fees when using RippleNet, but their profits are not tied to the price of XRP.
- Retail investors: Speculators profit from volatility. For example, in November 2024, the price of XRP rose by 430% due to rumors of regulatory easing.
- Market makers: Exchanges (Bitstamp, Bitso) earn income from the spread, but their goal is to maintain liquidity, not manipulate the price.
4. What will happen if Ripple tries to sell all XRP?
- Market crash: A mass sell-off will cause panic. In 2018, an attempt to sell 1 billion XRP led to a 30% correction in a week.
- Loss of trust: Banks will abandon RippleNet if XRP loses stability. For example, after the SEC lawsuit in 2020, 15 partners suspended cooperation.
- Regulatory sanctions: The SEC may tighten control by recognizing such actions as manipulation. In 2023, Ripple was fined $125 million for violating sales rules.
5. The real goal of Ripple
The company focuses on integrating XRP into the global financial system through:
- Regulatory clarity: After a partial victory in court against the SEC in 2023, Ripple is seeking recognition of XRP as 'not a security.'
- CBDC: Partnerships with central banks (e.g., Hong Kong) to launch digital currencies based on the XRP Ledger.
- Expansion of RippleNet: By 2025, the network will connect 300+ banks, including Western Union and American Express.
6. Example of ODL (On-Demand Liquidity) in action
1. A bank in Japan sends $5 million to Brazil via RippleNet.
2. The system converts $ → XRP at a rate of $0.5 → 10 million XRP.
3. XRP is instantly exchanged for Brazilian reais through a local exchange.
4. The recipient receives 99.9% of the amount (fee — 0.1%) in 3 seconds.
Key: Speed and liquidity are more important than the price of XRP. Even at $0.
