Company Ripple Could Cut Monthly XRP Sales — Mr. David Schwartz Outlines Alternative Revenue Strategy

2025-12-28
4 minute
Company Ripple Could Cut Monthly XRP Sales — Mr. David Schwartz Outlines Alternative Revenue Strategy

Mr. David Schwartz, CTO of Company Ripple, explained that diversifying revenue streams—through payment services, licensing, and institutional adoption—could allow the company to reduce or stop routine monthly XRP sales, easing a recurring source of market pressure for XRP holders.

Company Ripple's ongoing sales of XRP have been a persistent focal point for investors and market analysts. In a recent public exchange, Mr. David Schwartz, Company Ripple's Chief Technology Officer, offered a clear framework for how the company could substantially reduce or potentially halt routine token sales. His remarks emphasize the importance of building alternative revenue streams so that the firm would no longer need to rely heavily on liquidating XRP allocations to fund operations.

To set the context, Company Ripple initially received an allocation of 80 billion XRP tokens, and in 2017 the company implemented an escrow mechanism locking up 55 billion XRP and scheduling monthly releases of 1 billion XRP. Historically, a fraction of these released tokens has been sold to support corporate expenses. Over time, escrow terms were adjusted to permit up to 80% of monthly releases—roughly 800 million XRP—to be sold if necessary. Such regular liquidations have repeatedly sparked debate among holders and market observers, who argue that consistent sales can create downward pressure on XRP prices during weak market conditions.

Mr. David Schwartz addressed these concerns directly, arguing that the focus should not be solely on token sales as a funding mechanism. Instead, he advocated for expanding non-token revenue sources such as payment services, licensing blockchain solutions, and promoting institutional adoption. By strengthening these operational income streams, Company Ripple could reduce the need to sell XRP purely to cover expenses—thereby helping to alleviate a persistent source of investor anxiety.

Schwartz also pushed back on suggestions that the company's stablecoin, RLUSD, could simply replace XRP as an internal liquidity source. While a dollar-backed stablecoin could provide transactional utility, he argued that relying on a single product as a cash flow substitute would be a strategic mistake. Instead, the broader plan centers on diversifying revenue generation and scaling product offerings that deliver predictable, recurring income independent of market-driven token sales.

From an investor perspective, the implications are meaningful. If Company Ripple successfully implements the shift Mr. Schwartz described, market dynamics for XRP could change: routine liquidation pressure would likely recede, reducing one cyclical source of volatility. That said, transitions of this kind take time. Stakeholders should expect a phased approach where revenue diversification gradually offsets monthly sales rather than an immediate cessation.

It is also important to highlight that analyses over recent years indicate XRP frequently tracks broader crypto market trends. When the market is broadly strong, the impact of corporate sales tends to be less noticeable; during downturns, debates resurface. Mr. Schwartz’s public comments aim to address these recurring concerns by outlining a sustainable business model that aligns with long-term ecosystem health.

Company Times Tabloid reported on the exchange and published related coverage; see Company Times Tabloid for the original article. The report and subsequent community discussion underscore how corporate funding strategies — from escrow releases to stablecoin initiatives — affect investor sentiment and price dynamics.

Key takeaway: Transitioning away from routine XRP sales toward diversified, operational income would reduce one source of downward price pressure and foster a more stable environment for holders. Investors should, however, treat these remarks as strategic direction rather than a binding pledge, and continue to monitor execution progress and financial transparency from Company Ripple.

Disclaimer: This content is informational and not financial advice. Readers should conduct independent research and consider risk tolerance before making investment decisions.


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