Ripple Chief Technical Officer, David Schwartz, popularly referred to as the company’s trillion-dollar man has told the XRP community on Twitter why the company refused to give away 55 billion XRP ($1,111,864,999 at the time of writing).
During the conversation with former XRP enthusiast Tiffany Hayden, who said Ripple originally had the mind of giving away $55,000,000,000, but the company failed to do so without giving any explanation to the community.
Tiffany has been criticizing some perceived irregularities in the XRP ecosystem; however, she has not been satisfied with the responses coming from Ripple, the company overseeing everything XRP.
This time around, Tiffany fumed on seeing that Stellar Lumen (XML) has seen over 90% price growth in the last three months, and XRP, -1.29% in the same time frame.
The statement from Tiffany was greeted by a follower who inquired whether XLM is being financed with XRP.
Responding to the inquisitive Twitter user, Tiffany said all the tokens pre-generated when Stellar was launched, are being used to develop the crypto ecosystem.
She also said the Stellar Development Foundation burnt their holdings of 100 billion XLM, because they felt it was too much for them.
The question by the Twitter user was fueled by the fact that Stellar co-founder, Jed McCaleb, also co-founded Ripple, and has some shares of XRP.
In a Medium post published by Whale Alerts in February 2020, the Ripple co-founded was said to have sold around one billion XRP in a span of 6 years.
The publication averred that there McCaleb has close to 5 billion XRP waiting to be sold. However, there was an agreement signed between the co-founder and Ripple on how to sell the remaining tokens. The estimate denotes that McCaleb is in possession of close to 5% of the total XRP supply.
Meanwhile, Ripple’s Schwartz also responded to the statement by Tiffany that Ripple decided not to give away its holdings of 55,000,000 XRP.
The expert said Ripple tried its best, but the moment the firm discovered that people could sell XRP easily, giving away the tokens became “really hard.”
The Ripple CTO, was then questioned about the Tiffany whether Ripple realized that the token could be used to “build proprietary software” and some other things that could be of great benefit to Ripple, but Schwartz did not respond.
Rather than giving away the said tokens, Ripple, in 2019, locked up 55 billion XRP in a “cryptographically-secured escrow account” purposely to make stabilize the price of XRP in the crypto market.
Over the years, Ripple has partnered with lots of firms making use of XRP for daily transactions through the On-Demand Liquidity (ODL) service, created to reduce the woes experienced during cross border payment.
Also, MoneyGram, after partnering with Ripple, said it makes use of XRP through ODL for payments across the world.