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Ripple Could Burn 48 Billion XRP, Says Company CTO

Ripple Could Burn 48 Billion XRP, Says Company CTO
  • Ripple CTO says validators force the firm to burn 48 billion XRP.
  • Ripple decided to burn over 50 billion of Stellar Lumens (XLM).
  • More so, there is a long-standing criticism of Ripple for routinely selling tokens.

Ripple Chief Technology Officer David Schwartz explained that validators force the firm to burn its 48 billion XRP tokens to support XRP price.

Validators force firm to burn XRP, says Ripple CTO

Ripple is one of the most popular US-based technology firms. Moreover, Ripple CTO Schwartz admitted in a series of tweets that community votes could force Ripple to burn its entire XRP holdings. Thereby, mentioning blockchain is “very democratic”.

Moreover, as there are presently 45.3 billion tokens in circulation, a sudden release of a portion of the escrowed tokens could cause the price of XRP to plunge. According to CoinGecko, the XRP price is $0.57, at the time of writing.

XRP Price Chart 1-Month (Source: TradingView)
XRP Price Chart 1-Month (Source: TradingView)

Ripple burns over 50 billion XLM tokens

Additionally, Ripple decided to burn over 50 billion of Stellar Lumens (XLM) in November 2019. At the time, Stellar reduced its total supply of 105 billion XLM tokens down to 50 billion. According to CoinGecko, XLM price is $0.173, at the time of writing.

Ripple CTO hit out at the Stellar Development Fund for burning over 50% of the total XLM tokens.  In addition, he said that it is “too bad XRP is decentralized, or someone could just burn half the supply and raise the price to 29 cents.”

More so, there is a long-standing criticism of Ripple for routinely selling tokens. As per XRPArcade report, the firm sold approximately 196 million XRP per month since December 2017. Furthermore, in order to support the XRP price, Ripple decided to stop selling XRP and embark on purchasing back the tokens in the Q2 and Q3 of this year.

Read Also: Stellar Lumens (XLM) Skyrockets After Protocol 15 Upgrade

Crypto trading has enticed Ananthi Reeta to write for CoinQuora. She consistently contributes news and feature articles. She has covered several different blockchain and crypto niches, especially altcoins.