Schwartz Addresses Allegations of XRP Price Manipulation

David Schwartz refutes the allegations, affirming the cessation of programmatic XRP sales in Q1 2023 as stated in Ripple’s report.

Ripple’s Chief Technology Officer, David “JoelKatz” Schwartz, addressed allegations in a recent exchange on X that implicated the company’s programmatic sales in XRP price manipulation.

Schwartz unequivocally refuted these allegations, affirming that Ripple had discontinued its programmatic XRP sales in the first quarter of 2023, as specified in the XRP Markets Report for Q1 2023.

Additionally, he elaborated that Ripple had consistently made an effort to mitigate the price impact of these sales, professing perplexity regarding the purported motivation behind the manipulation allegations.

However, some members of the XRP community reacted with skepticism to the announcement.

David Schwartz was accused of deceiving the community regarding the end of programmatic sales by an X user with the handle @GenesisLedger, who noted that Ripple’s XRP holdings decreased by more than 700 million in the fourth quarter of 2023.

He contested these assertions by emphasizing Ripple’s sales report transparency, contending that the information presented was unambiguous and emphasized to prevent any misinterpretations.

Notwithstanding this, criticisms continued to revolve around Ripple’s disclosure of its sales methods after programmatic sales.

Detractors highlighted an absence of transparency in the company’s payment solutions and on-demand liquidity (ODL) figures after the first quarter of 2023.

Schwartz Clarifies Sales Practices

David Schwartz comprehensively explained the phrases “programmatic sales” and “sales in connection with ODL” in response to inquiries seeking clarification.

To facilitate liquidity, he defined programmatic sales as market-making activities on exchanges with a net bias toward selling. In contrast, ODL sales rely on Ripple’s payment solutions, which utilize XRP as a bridge currency to facilitate international transactions, including converting Mexican pesos for domestic dealings.

The objective of Schwartz’s elucidation was to provide a clear understanding of Ripple’s operational strategies and how they affect the market dynamics of XRP. The company emphasized its dedication to transparency and the reduction of market disruptions.