Ripple Technology Leader: The custodial mechanism is actually restricting XRP sales, and the price has already priced in future expectations.

2025-12-25 06:00:13

【Crypto World】Ripple’s Chief Technology Officer David Schwartz recently spoke out on social media, providing an interpretation of the company’s established custody mechanism in 2017.

The design of this mechanism is as follows: lock 55 billion XRP, then release 1 billion each month regularly. It sounds quite rigorous. But Schwartz’s view is interesting—he says that this mechanism actually restricts the flexibility of XRP sales.

To put it more plainly, he himself opposes this custody arrangement. In his view, the emphasis on “predictability” when promoting this mechanism actually masks a deeper issue: it locks the company’s sales space in the face of market changes. In comparison, unlimited release of XRP actually provides more operational flexibility.

So why hasn’t the price plummeted because of this? Schwartz explains that these potential future sales have long been priced into XRP by the market. In other words, investors have already factored in this risk, so the current price reflects this expectation.

XRP-1.97%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

18 Likes

Reward
18
7
Repost
Share

Comment

0/400

ponzi_poet

· 2025-12-27 22:40

Ha, this guy is only now saying it? When you were hyping up "predictability" back then, why weren't you this honest? The market has already digested it, no matter what you say, it's useless. You just want the freedom to dump endlessly, got it. The custodial mechanism, in the end, is just a trick, what are you pretending for?

View OriginalReply0

Blockchainiac

· 2025-12-27 20:22

Basically, this guy just wants to shake off this shackles, and still needs to find reasons to justify it. It's already priced in, those who understand know, this set of arguments is a bit interesting. The custodial mechanism was originally a compromise, now regretting it is indeed interesting. Overthinking it, if restrictions are really lifted, prices will bottom out in minutes. This logic... is a bit far-fetched, have future expectations been digested? Which trader would believe that?

View OriginalReply0

EternalMiner

· 2025-12-25 09:29

Has this custodial mechanism become a shackle? Then why was it designed this way in the first place...

View OriginalReply0

BuyHighSellLow

· 2025-12-25 06:30

Haha Schwartz, are you hinting at unlocking the lock positions? Everything you're saying is paving the way for unlimited release.

View OriginalReply0

CryingOldWallet

· 2025-12-25 06:25

Schwartz is hinting that the initial custody design was just a compromise. If you really want to let go, just do it completely. Doing all this only ends up tying yourself down.

View OriginalReply0

rekt_but_vibing

· 2025-12-25 06:05

Basically, it's just wanting to break free from the shackles. If I had known that custody was so troublesome, I wouldn't have bothered with it.

View OriginalReply0

BearMarketSurvivor

· 2025-12-25 06:03

Haha, isn't this just saying that the custody mechanism is actually a facade... The real goal is to leave more room for selling oneself.

View OriginalReply0