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.

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.Source:Show originalDisclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.