Ripple XRP Strategy Resonates with Market

Ripple XRP investors are heavily backing a new plan by the token’s creators to manage its market, a move designed to limit availability and create a scarcity value.

As of the end Tuesday’s business day, investors had bid up the token more than 25 percent to 0.326129, giving it a market cap close to $13 million.

Under its plan, Ripple will lock up a sizable number of its assets in escrow contracts by the end of this year.  The idea is to freeze the value and assuage investor fears that the firm would dilute the XRP price by releasing a large number of cryptocurrency at once that has not been available to the public. The firm has retained approximately $16 billion in estimated token value.

Of that huge number, Ripple has promised to lock 88 percent of the outstanding amounts it holds in a chain of smart contracts. As those contracts expire, the XRP would be available for the company’s use only for a limited time each month, a strategy that is anticipated to roll out over four-and-a-half years.