Ripple’s CTO tells that it might be issuing a huge quantity of XRP in order to counter the expected decline in its value. The XRP lying in the Ripple’s escrow account for a long shall be used to fill the vacuum and help the value remain stable.
Ripple is anticipating a considerable amount of decline in the value of its native coin, XRP. It is said that if frozen tokens are not issued in the market then there is a likelihood of XRP’s price drop. This would lead Ripple’s CTO, David Schwartz to use the social media platform to inform the community about future plans.
In a tweet message posted on December 2nd, an investor of XRP had posed a question to Ripple’s CTO. In the question, the investor asked whether is there any possibility that the XRP kept in escrow would be issued. In response to this, Schwartz told that of course there is a huge bulk of XRP available in escrow account. Schwartz added that they will consider the possibility of burning 50 billion dollars worth of XRP lying in escrow when the time arrives.
Furthermore, he stated that the crypto world and in particular the blockchain industry works more like a democracy. This meant that whatever decision is taken therein is on the basis of the majority rule. He added that for burning XRP, they need to seek majority votes from the overall community and nodes’ validators. Schwartz told that in case they would require to aid XRP’s value to remain stable, they would do everything to do so. He apprised that the possibility of issuing fresh XRP in order to prevent the expected decline in value cannot be ignored.
The market conditions for XRP suggested that the sales of the coins are going down rapidly. This will result in the decline of its value as Ripple had refused to supply any coins to crypto exchanges. There are at least 49 Billion Dollars worth of XRP available with Ripple in an escrow account. Currently, there are 45 billion dollars worth of coins are under circulation in the industry. If these XRPs (which are lying in the escrow account) are issued, then this will increase the value of XRP instantly.