Tuesday , September 21 2021

Ripple could destroy $ 29 billion in tokens. How this will affect the XRP rate



CTO of blockchain startup David Schwartz talked about the conditions under which a company can spend 48 billion coins and how it will affect its value

David Schwartz, CTO of blockchain startup Ripple, confirmed that validators of the XRP token network involved in the transactions could force the company to burn its 48 billion coins – just over $ 29 billion, a company spokesman said on his Twitter account. answering a subscriber question.

Ripple will not be able to prevent the burning of tokens if the entire cryptocurrency network validator community votes in favor of such a decision, Schwartz said. a wallet to which no one has access.

“There is no way Ripple can stop this. Public blockchains are very democratic. “If the majority wants to change the rules, the minority will not be able to prevent it in any way,” Schwartz wrote.

Ripple has issued only 100 billion XRP tokens. In 2017, the company froze 55 billion coins, which showed that it would not be able to sell the entire stock of cryptocurrency at once and break its rate. Since then, the startup has unlocked 1 billion XRP every month. At the moment, according to the site Wave still has 48.3 billion XRP in storage.

If Ripple burns 48 billion tokens, which is half the cryptocurrency issue, this could have a positive effect on its price. This has already happened with the elvezdena project. In November 2019, the Stellar Development Foundation (SDF) destroyed 55 billion of its XLM toxins – just over half of its assets – followed by a 16% increase in value.

– Ripple co-founder sells $ 375,000 XRP marks daily

– Ethereum and Ripple were compared with a pyramid scheme

“The potential for growth remains.” Need to buy a richen token?

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