- David Schwartz, CTO of Ripple, talks about why selling XRP is inevitable given the tax ramifications and holding difficulties.
- With a lack of self-interest and a lack of confidence in Ripple’s leadership, Dev Null Productions leaves the XRP ecosystem.
A recent issue with the Automated Market Maker (AMM) feature of the XRPL (XRP Ledger) affected liquidity providers as well as traders in the XRP community.
This problem was identified by Ripple and XRPL participants like RippleX, Orchestra Finance, and Tequ. It concerned the complex process of moving liquidity from the payment mechanism known as the decentralized exchange (DEX) to the AMM pools and conventional order books.
Swift Solution from Ripple Engineers Awaits Community Approval
The technical team at Ripple promptly created a workaround for this bug. However, the XRPL community has not yet approved this cure, and network validators must agree before it can be put into action.
The AMM bug fix is open for review on GitHub and will be in the 2.1.1 release of rippled. We’ll also publish a blog post tomorrow with more info about what happened and next steps. https://t.co/Z5v0cTvOvF
— RippleX (@RippleXDev) March 27, 2024
To effectively halt this passive revenue stream until a solution is found, Ripple has advised caution in the interim, advising players to hold off on funneling funds into the AMM pools and reclaim whatever LP tokens they may have.
In addition to this technological maze, Ripple is engaged in a protracted legal dispute with the SEC about the legitimacy of its XRP offerings to institutional investors.
The SEC’s demand for a massive $2 billion in fines against Ripple highlights the legal challenges and regulatory ambiguity confronting the crypto business as a whole, as previously highlighted by ETHNews. For a deeper dive into these developments, you can check out this YouTube video.
Technical Analysis and Prospects for the XRP Market
Since July 2023, the market dynamics for XRP have demonstrated a cautious trading pattern below the crucial $0.75 resistance level, which is indicative of these difficulties.
With Ripple’s ongoing legal and technical issues, the XRP/USDT pair has shown tenacity, bouncing back each time it approaches the $0.4743 support, suggesting that the market is in a wait-and-see attitude.
Experts think that if XRP breaks through the $0.75 barrier, it might gain positive momentum and move toward $0.86. But cautious trading is necessary given the indecisive nature of the market right now and the crucial liquidity threshold below $0.63.
A verified ascent above the Fair Value Gap, which is located between $0.7527 and $0.7609, may indicate a strong rally and provide investors and XRP fans with hope during these tumultuous times.
Meanwhile, looking at the performance of the XRP coin, its price has dropped by more than 4% in the last 24 hours to $0.6162, bringing its market capitalization to $33.82 billion.