In a recent discussion on X, Ripple’s Chief Technology Officer, David “JoelKatz” Schwartz, addressed accusations claiming that Ripple had manipulated the price of XRP through its programmatic sales.
Schwartz unequivocally rejected these allegations, affirming that Ripple had discontinued its programmatic sales of XRP starting the first quarter of 2023, a detail outlined in Ripple’s Q1 2023 XRP Markets Report.
He went on to explain that Ripple had consistently worked to mitigate the price impact of these sales and expressed bewilderment regarding the purported motive behind the accusations of manipulation.
Doubt and explanations.
However, the announcement faced skepticism from certain segments of the XRP community. An X user using the handle @GenesisLedger accused Schwartz of misinforming the community about the cessation of programmatic sales, citing a reduction in Ripple’s XRP holdings by over 700 million in Q4, 2023.
Schwartz countered these allegations by emphasizing Ripple’s commitment to transparency in its sales reports, asserting that the provided information was clear and highlighted to prevent any misconceptions.
Nevertheless, doubts persisted regarding Ripple’s disclosure of its sales methods post-programmatic sales, with critics highlighting a perceived lack of transparency in on-demand liquidity (ODL) numbers post-Q1, 2023, and raising questions about the effectiveness of Ripple’s payment solutions.
Clarifying programmatic sales and on-demand liquidity (ODL) transactions.
In response to requests for clarification, Schwartz offered detailed explanations of the terms “programmatic sales” and “sales in connection with ODL.”
He defined programmatic sales as market-making activities on exchanges with a net bias toward selling, aimed at facilitating liquidity. In contrast, ODL sales are associated with Ripple’s payment solutions, wherein XRP serves as a bridge currency for international payments, such as converting to Mexican pesos for local transactions.
Schwartz’s elucidation sought to demystify Ripple’s operational strategies and their influence on XRP’s market dynamics, underscoring the company’s dedication to transparency and the mitigation of market impact.