Should Ripple Burn XRP To Pump Prices as Investors Disgusted in Company Dumping New Coins Into Market
Bitcoin was created with a fixed supply. It was, according to Satoshi Nakamoto, an anti-inflation measure. This way, there would be no mechanism to keep introducing more coins in the market. Ripple has followed the opposite route. The XRP market has innumerous tokens locked and Ripple can toss them into the market at any time.
This prompts the prices of the token to remain stable or low because there is never a shortage of tokens since they are constantly being released. Ripple works just a like Central Bank in this regard.
Now, a trader called Crypto Bitlord has started a petition so that Ripple should burn half of its XRP tokens in order to boost prices. With the supply reduced, the prices would rise. The main argument of the petition is that Ripple keeps dumping XRP on the market and it affects the price. This is unfair because the company holds over 50% of the total tokens.
So far, the petition is only half successful and just has over 300 signatures, but the idea is at least interesting. It is a good idea?
To Burn Or Not To Burn
Ripple is probably not burning the tokens. It can gain a lot of money by actually selling the tokens and what will the company get by burning them? Nothing.
Unlike its so-called decentralized system, Ripple is a company. It looks for profit. Because of this, its major interest is catering to banks and other financial institutions that can use its projects, not only its community of investors. Traders will possibly get upset, but it does not seem that things will change anytime soon.