After flashing green candlesticks on the price chart yesterday, Ripple’s native token XRP seems to have taken a downward trend.
As of the latest updates, XRP was trading at $0.6222 showing a 3.55% decline in just one day.
The sudden dip in the price seems to be influenced by Ripple’s CTO David Schwartz’s new post on X (earlier Twitter), which noted,
“It’s nearly impossible to avoid selling if you want to hold.”
Schwartz’s contradicting viewpoints
This highlighted his earlier emphasis on the importance of addressing tax liabilities related to cryptocurrency assets. It further outlined the challenges for both the company and its executives to avoid selling XRP.
However, this contradicted his earlier statement, which read,
“If Ripple gave me a 1,000,000 XRP bonus tomorrow, I would have no choice but to sell about half of it very quickly because my marginal tax rate (Fed + CA) for earned income is around 50%. Distribution is very hard.”
This threw light on the financial burden faced by individuals holding XRP as part of their compensation from Ripple.
The departure of Dev Null production
All these exchanges coincided with Dev Null Productions announcing their departure from the XRP ecosystem, citing dissatisfaction with Ripple’s leadership decisions.
After six years of significant contributions, they have expressed a loss of faith in Ripple’s integrity, especially their decision to sell XRP at the expense of retail investors. The report stated,
“XRP is always lagging behind in terms of performance in the markets, and as the old Wall Street adage goes, don’t marry a position.”
Moreover, Dev Null Productions also criticized the XRPL Foundation for prioritizing personal agendas over community interests.
Consequently, they announced the termination of XRP-related projects like Ledger City and urged community action against corrupt leadership within Ripple and the XRPL Foundation.
Why did XRP say ‘NO’ to AMM?
Additionally, when asked about the AMM (Automated Market Maker) integration in XRP, Schwartz’s response on the X network revealed the complexities of using XRP in AMM pools.
Pairing XRP with another asset in such pools effectively means selling half the XRP, potentially leading to tax implications for Ripple.
This highlights the complex considerations and potential tax obligations Ripple faces regarding XRP’s involvement in AMM pools.
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