Ripple Technology Leader: The custodial mechanism is actually restricting XRP sales, and the price has already priced in future expectations.

【Crypto World】Ripple’s Chief Technology Officer David Schwartz recently spoke out on social media, providing an interpretation of the company’s established custody mechanism in 2017.

The design of this mechanism is as follows: lock 55 billion XRP, then release 1 billion each month regularly. It sounds quite rigorous. But Schwartz’s view is interesting—he says that this mechanism actually restricts the flexibility of XRP sales.

To put it more plainly, he himself opposes this custody arrangement. In his view, the emphasis on “predictability” when promoting this mechanism actually masks a deeper issue: it locks the company’s sales space in the face of market changes. In comparison, unlimited release of XRP actually provides more operational flexibility.

So why hasn’t the price plummeted because of this? Schwartz explains that these potential future sales have long been priced into XRP by the market. In other words, investors have already factored in this risk, so the current price reflects this expectation.