Ripple XRP sales won’t stop. And a good chunk of the community wants answers.
This week, David Schwartz, the man behind Ripple’s technical strategy, got pulled into a public argument about whether selling XRP is good or bad for people who actually hold the token. The trigger? Crypto commentator Zach Rynes, who goes by @ChainLinkGod on X, said what a lot of retail investors quietly think. That Ripple’s whole setup mostly works out for Ripple. Not for you.
Schwartz disagreed. Loudly.
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What Is Rynes Actually Complaining About?
To understand the fight, you need to know how Ripple funds itself.
The company holds a huge amount of XRP sitting in escrow. Every month, a set portion gets unlocked. Ripple takes some of that, sells it on the open market, and uses the money. That cash goes toward things like product development and, notably, stock buybacks. Buying back its own stock is something that directly benefits Ripple’s shareholders.
Rynes pointed at this and said it plainly. When Ripple sells XRP, retail holders absorb the price pressure while shareholders pocket the gains. That’s not a wild take. It’s basic math.
His argument got traction because it touched on something a lot of XRP holders have quietly wondered about for years. Who does this model actually serve?
Ripple XRP Sales Are Fine, Says Schwartz
Schwartz wasn’t having it. He went on X and called the criticism logically wrong.
Here’s his angle. When Ripple offloads XRP and the price comes down, that’s not damage. That’s a discount. Buyers who pick up XRP at those lower levels end up better off than if the price had just stayed high the whole time. He also made the case that regular selling keeps the market liquid, which is genuinely useful for a token trying to function in real payment corridors.
It’s not a crazy argument. Liquidity matters. Ask anyone who’s tried to move a large position in a thin market.
But here’s the thing. Schwartz is the CTO of Ripple. Of course, he’s going to defend the company’s revenue model. That doesn’t make him wrong, but it’s worth keeping in mind where that defense is coming from.
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The Community Is Split and Has Been for a While
After Schwartz posted his response, the replies went in two very different directions.
One side shrugged and moved on. Running a major blockchain company isn’t free. If Ripple needs to sell XRP to stay operational and keep building, that’s part of the deal. The liquidity argument landed well with this group.
The other side pushed back hard. Not on the logic exactly, but on the lack of information around it. When does Ripple sell? How much in a given week? What triggers a bigger release versus a smaller one? Nobody outside the company really knows. That’s the sticking point.
A few people brought up that public companies have to file disclosures when insiders sell shares. XRP isn’t a stock, sure. But the community is asking for something in that spirit. Just tell us what’s happening and when.
Why This Keeps Coming Up
This isn’t the first time this argument has broken out. It won’t be the last.
Ripple has been publishing quarterly XRP Markets Reports for a few years now. Those reports give a general picture of escrow releases and sales volumes. But they’re quarterly. A lot can happen in three months, and retail holders are left guessing in between.
For investors in places like Japan, South Korea, and parts of Southeast Asia, where XRP actually sees heavy day-to-day use, that uncertainty costs real money. These aren’t people trading on vibes. They’re watching the escrow unlock schedule and trying to plan around it.
The frustration isn’t really about whether Schwartz is right or wrong on the economics. It’s about being kept at arm’s length from information that directly affects their holdings.
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Why does Ripple sell XRP at all?
It’s how they fund the business. They hold a lot of it, and selling chunks of it over time keeps the lights on, pays staff, and funds development. That’s been the model since early on.
Does the escrow system stop Ripple from dumping everything at once?
That’s exactly what it’s for. The escrow locks up XRP and releases a fixed amount monthly. Whatever isn’t sold gets put back in. It was set up to stop a scenario where Ripple floods the market overnight.
Who is Zach Rynes and why does his opinion matter?
Rynes runs @ChainLinkGod on X and has a decent following in the crypto research space. He’s known for digging into token economics, so when he calls something out, people pay attention.
Where does Ripple actually publish its sales data?
Head to ripple.com and look for the XRP Markets Report. They put one out every quarter. It’s not perfect, but it’s the most official breakdown available right now.
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