One of the defining characteristics of the XRP token is its supply – totalling 100 billion coins. In order to build liquidity for the XRP token, Ripple has been careful with distributing XRP over the years. It has set out distribution strategies that will result in a strengthening product and happier customers.
One of the defining characteristics of the XRP token is its supply – totaling 100 billion coins. In order to build liquidity for the XRP token, Ripple has been careful with distributing XRP over the years. It has set out distribution strategies that will result in a strengthening product and happier customers.
Despite Ripple’s transparent track record, questions were raised in 2016/2017 surrounding Ripple’s ongoing XRP distribution. The company stated the following, “the root of this uncertainty is the notion that Ripple might one day sell its 61.68B XRP in the market at any time.” In order to ease these uncertainties, Ripple committed itself to place 55 billion XRP tokens in cryptographically-secured escrow accounts by the end of 2017.
Ripple has always been transparent when it comes to their XRP token holdings. Brad Garlinghouse once spoke on behalf of the entity emphasizing the fact that they were “10 or 100x more transparent than anyone else in crypto”. As a result, they have opened themselves to scrutiny.
In a press statement, the company discussed its commitment to building upon the success of XRP as a liquidity mechanism. The long-term vision revolves around the provision of healthy services and the creation of fruitful partnerships. Ripple reinforced this notion by stating the following: “XRP has emerged as the only digital asset with a clear institutional use case designed to solve a multi-trillion dollar problem – the global payment and liquidity challenges that banks, payment providers and corporates face”.
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