In a recent thread on X, XRP enthusiast JDNomax (@JDNomax) addressed long-standing confusion surrounding Ripple’s sale of XRP through Over-The-Counter (OTC) deals. The thread offers a concise explanation of what these sales involved, why Ripple used them, and how their impact on XRP’s price and adoption has often been misunderstood. This information comes at a crucial time, as Hidden Road, a primo brokerage firm that Ripple recently acquired , has launched OTC crypto swaps for institutions, and many believe quiet accumulation is now possible for these institutions. According to JDNomax, OTC sales are a strategic mechanism that allowed Ripple to place XRP into institutional hands without disrupting public markets. He explained that OTC transactions were private agreements made directly between Ripple and institutional partners. These transactions avoided public exchanges, allowing Ripple to distribute large amounts of XRP without affecting its market price. This approach served three primary goals: promoting real-world utility , preserving price stability, and enabling targeted distribution to institutions actively integrating XRP into financial infrastructure. Ripple’s Escrow Releases and Strategic Distribution JDNomax also drew attention to Ripple’s escrow system. Each month, the company unlocks 1 billion XRP . He clarified that the company sells only a portion of it, typically via OTC agreements, with the rest returned to escrow. Importantly, he emphasized that the buyers of XRP in these transactions are not speculators but partners who use the asset for On-Demand Liquidity (ODL), custody solutions, and cross-border payments, integrating the digital asset into financial flows. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 JDNomax also noted that OTC sales do not affect prices in the same way as public exchange activity would. He clarified that the transactions are pre-negotiated and do not hit public order books. This separation from market-facing platforms meant less volatility and greater price stability. However, the longer-term effect of these sales is more impactful than often understood, as the tokens distributed through OTC deals are effectively removed from open circulation. A Potential Return to OTC Sales JDNomax also highlighted a critical shift in Ripple’s distribution model. While OTC sales were once a defining feature of Ripple’s approach, he noted that the company stopped OTC sales in 2023. XRP distribution is now solely tied to ODL transactions, meaning the asset is deployed directly in real-time liquidity corridors to support cross-border settlements. However, with Hidden Road’s recent launch of OTC swaps, OTC sales might become a crucial part of the ecosystem once again. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post Here’s What Happens When Ripple Sells XRP Over-the-Counter appeared first on Times Tabloid .
