- Shutting down the rumor
- Pushing back against fake incentives
Ripple veteran David Schwartz has debunked a social media rumor claiming that the company has secretly pre-allocated the vast majority of its XRP escrow to hidden institutional players
Recently, an X user falsely alleged that the Ripple CTO Emeritus had confirmed the existence of these clandestine contracts.
Shutting down the rumor
The initial social media post implied that there was a hidden operation occurring behind the scenes at Ripple
HOT Stories
Ripple’s Schwartz Denies Pre-Allocated XRP Contracts Are Real
Bitcoin (BTC) Lost $70,000: What’s Next? Is Chainlink (LINK) Hiding $10 Potential? XRP Aims at $1.20 Once Again: Crypto Market Review
The majority of Ripple’s locked XRP escrow, which releases tokens on a monthly basis, was already secretly earmarked for institutional buyers or specific partners. This was supposedly done through private contracts
Retail investors were allegedly being kept in the dark about the true distribution of the asset (as the latest conspiracy theory implies).
However, Schwartz swiftly replied to shut down the emerging rumor
Pushing back against fake incentives
Just two days before the latest comments, the Ripple CTO Emeritus made headlines for rejecting another controversial idea: offering banks “fake discounts” or artificial incentives to force them to use the digital asset.
Schwartz argued that such subsidies create a fragile business model. To illustrate his point, he compared the strategy to the early days of the ride-sharing giant Uber.
He noted that loss-making subsidies often attract users who will immediately abandon when there is an option to do so.
Schwartz stressed that Ripple prefers organic growth, allowing XRP’s utility to drive institutional adoption without the need to manufacture artificial demand.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Bitwise XRP ETF Leads Market With $426M in Cumulative Inflows as XRP ETF Assets Surpass $1B
Gate News message, April 25 — Bitwise's XRP ETF has emerged as the clear market leader in the growing XRP-linked investment product space, pulling in consistent net inflows while competing funds struggle to sustain momentum. According to market tracker Xaif Crypto, Bitwise's XRP ETF recorded net inf
GateNews1m ago
XRP Ledger Records $1.1B Net Inflows Over 30 Days, Surpassing Ethereum's $879M
Gate News message, April 25 — XRP Ledger topped all major blockchains (excluding stablecoins) in net capital inflows over the past 30 days, drawing $1.1 billion according to data from RWA.xyz. Ethereum trailed at approximately $879 million in inflows, followed by Stellar with $643 million and BNB
GateNews1h ago
XRP Price Compression Signals Imminent Breakout as Traders Pause
Key Insights
XRP trades in a compressed range with tightening volatility, signaling a potential breakout phase as market participation slows and price action stabilizes.
Open interest dropped sharply from over $10 billion to $2.5 billion, reflecting reduced leverage and weakening
CryptoNewsLand2h ago
XRP Breakout Holds as XRPL Lending Vote Gains Momentum
Key Insights
XRP maintains weekly strength above major cryptocurrencies as price holds above key EMAs, reflecting sustained momentum despite minor daily declines in trading sessions.
XRPL validators advance lending upgrades through XLS-65 and XLS-66, introducing pooled liquidity vaults and f
CryptoNewsLand3h ago
XRP Breakout Holds as XRPL Lending Vote Gains Momentum
XRP shows weekly strength, trading above EMAs after breaking from a descending wedge; XRPL advances XLS-65/66 lending upgrades with pooled vaults and fixed-term loans; derivatives rise in volume, open interest, and options activity.
Abstract: This report notes XRP's persistent weekly momentum and price strength above key moving averages following a breakout from a descending wedge. It covers XRPL validators voting on XLS-65 and XLS-66, enabling native lending, pooled liquidity vaults, and fixed-term loans to expand on-chain financial activity. It also reports rising derivatives participation, with higher trading volume, open interest, and a surge in options activity, suggesting increasing trader positioning for a continued breakout.
CryptoNewsLand3h ago
XRP Price Nears $1.50 Breakout as Triangle Tightens
Key Insights:
XRP consolidates within a symmetrical triangle, with tightening price action suggesting a potential breakout toward higher resistance levels as bullish momentum continues building.
Supertrend turning green and MACD rising indicate increasing buying pressure, supporting a bullis
CryptoNewsLand3h ago
