Ripple CTO Stands Firm: GSR Trading Bots Defended Amidst XRP Sales Scrutiny

In a recent discussion on X, David Schwartz, Chief Technology Officer at Ripple, elucidated the reasoning behind the company’s adoption of trading bots from GSR for its XRP sales initiative. This disclosure comes at a time of increased scrutiny triggered by documents revealed in the Ripple vs. SEC lawsuit, providing insights into Ripple’s systematic sales approaches.

The focus was mostly on an email discussion that occurred between the Ripple team and market maker GSR. It disclosed a choice to “let XRP breathe” by stopping sales of XRP using GSR’s trading bots.

XRP community members pointed out that following the cessation of bot sales, XRP experienced a substantial surge, reaching its highest value to date. This has led to speculation that the previous sales may have been a factor in suppressing the asset’s price.

In the midst of community unrest, Ripple’s Chief Technology Officer proactively participated, aiming to provide clarifications wherever possible. One area he sought to elucidate was Ripple’s decision to utilize GSR for the programmatic sales.

XRP Community Skeptical Despite CTO’s Clarification

Schwartz mentioned he didn’t know much about the GSR email chat. He speculated Ripple consciously assigned sales to third parties to avoid allegations. This reduced insider trading risks. Schwartz believed Ripple aimed for compliance to avoid market involvement. Firms like GSR were granted sales authority for regulatory risk reduction.

Schwartz stressed that the SEC did not accuse Ripple of manipulating prices. This supports Ripple’s lawful sales practices. Furthermore, he highlighted government authorities’ scrutiny of Ripple for any malpractice hints.

In a past occurrence, the Ripple CEO, Brad Garlinghouse, fell victim to an artificial intelligence (AI) software-generated clone, deceiving XRP users into transferring their tokens to a specified address with the false assurance of doubling their deposits. In reaction, Garlinghouse issued a warning about the proliferation of deceptive “deepfake scam videos.”

Nevertheless, the Ripple CTO’s reply has not succeeded in satisfying members of the XRP community. The discussion continues, with ongoing examination of Ripple’s broader initiatives aimed at supporting the price of XRP.

Related Reading |

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

Comments (No)

Leave a Reply