Pre Allocation is defined as the following: To set aside before a need arises for a purpose. For some time there has been an ongoing theory brought to life by many social media users. A theory in which the XRP that Ripple held in a time locked escrow was pre-allocated for central banks and governments around the world. You can ever throw remittance companies in the mix along with banks. The important part here to remember is this is all a theory and Ripple has never entertained it, until now.
David Schwartz CTO at Ripple was in a fireside chat just last week and chimed in on this theory and really put the nail in the coffin. The video is linked below at time marked at the 47-minute mark.
David was asked “are current escrow XRP held for central banks to utilize in the current financial crisis as per the new inclusions to the cares act”
David responded with:
there are a lot of conspiracy theories and speculation on twitter where people make things up out of whole cloth, the word hopium is sometimes used to describe this idea that you’ll see people will see ripple or they will see xrp or other crypo and everything going on in the news. There are certainly big things going in the news that we dont always announce but those conspiracy theories do not have any grounding.
David Schwartz but an end to any pre-allocation. He put the nail in the coffin. Is this bad news, of course not. Is this good news, 100% yes. There are too many hopium type “theories” going around in the XRP community which can lead to toxic community vibes. When David is unable to speak on a topic he makes it known that he is unable to speak or he is under an NDA. The issue with theories is that only 1 group, 1 entity can put an end to them and that is Ripple themselves. A theory can go on forever, because that is exactly what it is a theory. There is no timetable for theories to expire, the only way a theory can end is if the company or whoever the theory is about comes out and puts an end to it. Theories can only be proven wrong when the source that the theory is based upon puts an end to it and that is exactly what happened here.
In our opinion it sounds like David was actually sick and tired of hearing people say Ripple has pre-allocated its locked up XRP. Giving the XRP community a false sense of hope, that one day or before an IPO we would all find out that Ripples XRP has been split up and given out to central banks around the world so every major central bank held the same amount of XRP. This is 100% false and it is time to move on.
What Ripple actually does, is they stop institutions who purchase XRP from dumping onto the market. Ripple signs agreements with customers to prevent them from dumping onto the market and hurting the value of XRP.
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