In the midst of ongoing scrutiny surrounding the legal battle between Ripple and the SEC, Ripple’s Chief Technology Officer, David Schwartz, recently addressed concerns regarding the company’s use of trading bots from GSR for its XRP sales program.
This revelation comes after documents from the lawsuit shed light on Ripple’s programmatic sales practices, particularly an email exchange between market maker GSR and Ripple’s team.
Schwartz provided insight into Ripple’s decision to employ trading bots from GSR for its XRP sales program in response to the increased scrutiny. He clarified that while he did not have privileged information about the specific email exchange with GSR, Ripple’s choice to delegate sales to external entities was a strategic one.
He speculated that this move aimed to mitigate accusations of insider trading and price manipulation. By entrusting entities like GSR with sales, Ripple sought to ensure compliance and avoid direct involvement in the market, thereby reducing the risk of regulatory repercussions.
Schwartz also pointed out that the SEC charges against Ripple did not include specific allegations of price manipulation, suggesting that their sales practices were legitimate.
However, despite Schwartz’s efforts to offer clarifications, members of the XRP community remain unconvinced. The debate continues, with ongoing scrutiny of Ripple’s broader efforts to increase the price of XRP. The community’s skepticism highlights the importance of transparency and accountability in Ripple’s sales practices.
It is worth noting that shortly after halting XRP sales through GSR’s trading bots, the price of XRP surged significantly to its all-time high. This has led to speculation among community members that the previous sales had suppressed the price of the asset. This speculation emphasizes the delicate balance between market dynamics and the influence of external factors on the valuation of XRP.
