Speculation on XRP Token Minting
Recently, there have been several speculations that the famous fintech company, Ripple, plans to mint additional XRP tokens. However, a comprehensive review of the facts by industry experts and key figures within the XRP community has clarified the matter.
The catalyst for this discourse emerged from a recent post by an X user with the username Internet Dollar, who raised concerns about the potential inflationary impact of additional XRP minting. The post ignited discussions on XRP’s long-term future and its supposed centralization.
Clarity From Key Figures
Meanwhile, key figures within the XRP community, including Ripple’s current Chief Technology Officer, David Schwartz, provided crucial insights into these concerns. He explained that the XRP Ledger’s genesis block, established in 2012, set the maximum supply of XRP tokens at 100 billion, which remains unchanged.
Schwartz, who succeeded Jed McCaleb as Ripple’s CTO, confirmed that Ripple received 80% of the XRP supply as a gift during its inception. This supply was primarily allocated to visionaries behind the XRP Ledger and Ripple, including Schwartz, McCaleb, and advisor Arthur Britto.
Ripple subsequently locked up most of its share in escrow wallets and has released XRP tokens monthly to meet liquidity demands. Despite fluctuations in the circulating supply due to these escrow releases and token burns, no additional minting events have occurred since 2012.
This fact was corroborated by Kyle Felker, an active member of the XRP community, who stressed that Ripple has relinquished control of most of its nodes and has no plans to mint more XRP tokens.
Following Schwartz’s explanations, the XRP community agreed that XRP’s total supply is capped at 100 billion tokens, and there are no plans to mint more tokens beyond this predetermined limit. This explanation further reaffirms Ripple’s commitment to transparency with the XRP community.
Unusual XRP Whale Activity Raises Eyebrows
Meanwhile, Whale Alert, a popular crypto tracking service, detected a withdrawal of 20.62 million XRP tokens from the Binance cryptocurrency exchange. The $10.57 million worth of transaction caught the community’s attention because such transactions are often associated with platforms linked to Ripple Payments services, such as Bitstamp and Bitso.
However, this transaction didn’t follow the pattern of conventional channels, and the undisclosed destination of these tokens created an element of mystery. The initial speculation regarding the involvement of an external entity was false as XRPL explorers’ data showed that the recipient’s address is linked to Binance’s hot wallet for XRP tokens.
Thus, this transfer could be an internal transaction within the exchange rather than the actions of an external whale in the cryptocurrency market.
XRP’s Price Action After Hacking Incident
XRP’s price dropped by over 5% today following rumors that the Ripple network has been hacked. However, the firm’s executive chairman, Chris Larsen, explained via x that the hack happened on his personal XRP wallets and that the network’s XRP tokens are safe.
Larsen added that exchanges had frozen the affected addresses as the Ripple team identified the hack early enough. Famous blockchain detective ZachXBT was the first to notify the public about the hacking incident. At the time of writing, XRP’s price is down 1.6% in the last 24 hours per Coingecko data and trades at $0.512.
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