Former Director of Developer Relations at Ripple Matt Hamilton offered excellent commentary on the topic in a recent Twitter debate about Ripple’s impact on the value of XRP. Hamilton emphasized crucial elements that make the connection between Ripple’s holdings and the volatility in XRP’s value while taking part in an animated argument.
Hamilton noted that, with about 48 billion tokens, Ripple is undoubtedly the largest XRP holder. However, he emphasized that practically all of those interests are protected by escrow agreements. Each month, these contracts release a certain amount of XRP, of which Ripple only promotes a tiny portion while investing the remainder in new escrow contracts.
In light of the global daily sales volume of XRP, which is now estimated to be around 4 billion tokens, Hamilton stated that Ripple’s influence on the market is rather limited.
The developer then explains the fundamental processes that basically determine XRP’s value. He stressed that XRP’s value is mostly determined by market forces and Bitcoin’s (BTC) efficiency.
When a group transgresses: Burn
Hamilton added that neither XRP nor XRPL are under the control of Ripple. To emphasize this level, he gave the group the option of burning all of Ripple’s XRP assets if they decided it was necessary.
Hamilton reaffirmed that this shouldn’t be considered as a troubling problem in the long run-in response to concerns over Ripple’s crucial possession of the token. He explained that because Ripple only has one validator, the group has the ability to vote for a change that will effectively “burn” the company’s assets if they act in the group’s interests.
