Critics Claim Ripple Prioritizes Shareholders With XRP Sales
A public debate over Ripple's financial strategy intensified on March 16, 2026, after crypto commentator Zach Rynes, also known as ChainLinkGod, labeled the XRP Ledger an "obsolete ghost chain." Rynes argued that Ripple sells its pre-mined XRP holdings to the public and uses the proceeds to fund corporate activities, such as acquiring companies and executing stock buybacks. This model, he claims, increases the enterprise value of Ripple Labs for its shareholders, while the benefits do not directly flow back to the token holders who effectively fund this growth.
The accusation questions the fundamental alignment between Ripple, the corporation, and the holders of its associated digital asset, XRP. Rynes's critique suggests that retail investors are indirectly financing a corporate strategy that may not be centered on maximizing the value or utility of the XRP token itself, sparking a widespread discussion on token economics and value accrual within the digital asset community.
CTO Argues Sales Create Investor Buying Opportunities
In response, Ripple CTO David Schwartz challenged the criticism, proposing that the token sales provide a direct benefit to market participants. Schwartz contended that if Ripple's sales exert downward pressure on XRP's price, it allows investors who believe in the asset's long-term potential to accumulate it at a lower cost. This defense frames the sales not as a detriment but as a mechanism that facilitates wider distribution and entry points for new holders.
Schwartz's perspective aligns with his previous comments on token value, where he downplays the direct impact of financial engineering like token burns. He has previously pointed to the November 2019 event when Stellar burned 50% of its XLM supply, an action that resulted in only a brief 14% price increase and had a negligible long-term effect on its price chart. Instead, Schwartz argues that value is driven by "massive indirect impacts" from network growth, such as the adoption of real-world assets (RWAs) and bridging functionalities, rather than supply-side adjustments.
On-Chain Activity Triples as Price Trades in $1.36-$1.45 Range
While the debate focuses on Ripple's corporate actions, on-chain data presents a conflicting narrative to the "ghost chain" accusation. Since March 10, XRP has been trading in a narrow range between $1.36 and $1.45, with volatility indicators like the Bollinger Bands tightening significantly. This pattern often signals that a substantial price movement may be imminent as liquidity returns.
Countering the stagnant price, network fundamentals show signs of explosive growth. Daily transactions on the XRP Ledger have nearly tripled, approaching 3 million per day from approximately 1 million in mid-2025. This sharp increase in network activity suggests growing utility and adoption, providing a key data point for investors weighing the criticisms against tangible evidence of the ledger's use.
Edgen Crypto·Mar 18 2026, 08:29
