Gate News message, April 22 — A viral social media thread accusing Ripple of systematically selling hundreds of millions of XRP monthly to fund operations has reignited a long-standing debate over the token’s tokenomics and price trajectory.
The post detailed Ripple’s token allocation: 100 billion XRP were created at genesis in 2012, with founders retaining 20 billion and the company receiving 80 billion. In December 2017, Ripple locked 55 billion XRP into smart contracts releasing 1 billion per month, of which the company typically relocks 70 to 80% and retains approximately 200 to 300 million XRP for operations—currently worth about $400 million monthly. The post claimed XRP holders face ongoing dilution by design and noted the token has fallen for six consecutive months.
Lawyer Bill Morgan rejected the dump theory’s central premise, arguing that XRP price movement correlates primarily with Bitcoin rather than Ripple’s monthly sales. He noted that if consistent selling truly suppressed price, that effect would be visible across every market cycle. Instead, XRP has posted significant gains during periods of identical selling pressure. Morgan highlighted that XRP has increased 24,602% since Ripple began selling it thirteen years ago, while Ripple’s escrow holdings have decreased from significantly higher levels to approximately 33% of total supply, meaning theoretical selling pressure declines over time rather than compounds.
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