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Ripple Could Burn Over $61B Of XRP Tokens, CEO Says

Ripple Could Burn Over $61B Of XRP Tokens, CEO Says
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Ripple – the company that developed the software on which the XRP network is running (CRYPTO: XRP) – can burn a significant portion of the total coin supply.

What happened: During a recent interview, Ripple CEO Brad Garlinghouse said that he is always open to new ideas that are beneficial to the XRP ecosystem when asked if the company will burn escrow coins. He said:

“I don’t rule anything out and I think to the extent that there are things that make sense for the XRP ecosystem, Ripple will definitely look into that.”

why does it matter: According to XRP news and data site XRPArcade, there were 47.8 billion XRP locked into Ripple’s collateral as of yesterday.

According to CoinMarketCap data, this translates to approximately $66 billion, or approximately 105% of the current circulating supply or 47.8% of the total supply.

The idea of ​​destroying this huge reserve of XRP is not new.

At the end of 2020, the company’s chief technology officer also I confess That network nodes, validators and the community can jointly decide to burn escrow themselves and “there will be nothing Ripple can do to stop it.”

See also: How to buy Ripple (XRP)

“If the majority wants to change the rules, there is nothing the minority can do to stop them,” he added.

What then: Token burning is the process or removal of a certain amount of tokens from circulating supply, which leads to a reduction in the supply of tokens and a subsequent rise in the value and price of the token.

price movement: XRP is trading at $1.17, down 12.67% at press time. The current circulating supply is over $45 billion worth of tokens.

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