According to Bijié Wǎng, Ripple's Chief Technology Officer David Schwartz stated that before the implementation of the escrow mechanism in 2017, the company could have sold any amount of XRP it wished. In a recent social media post, Schwartz clarified that the escrow system actually limited Ripple's ability to sell XRP freely. He opposed the introduction of the escrow mechanism, arguing that the benefits of the system were not sufficient to justify the loss of operational flexibility. Prior to 2017, Ripple had a total escrow amount of $1,000, and the company could have increased its holdings and sold more XRP each month if it had chosen to do so. The escrow mechanism, which locks 5.5 billion XRP and releases 1 billion monthly, was promoted as a way to provide predictability for investors.
Ripple CTO Reveals Company Could Have Sold More XRP Before Escrow Mechanism
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Summary
Ripple CTO David Schwartz said the company could have sold more XRP before the 2017 escrow mechanism. He noted that prior to the system, Ripple had a $1,000 escrow limit and could have increased monthly sales. The escrow locks 5.5 billion XRP, releasing 1 billion monthly, to stabilize the crypto market. Traders are keeping an eye on altcoins to watch as Ripple’s strategy evolves.
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