David Schwartz, the former Chief Technology Officer of Ripple, said that XRP burning is not directly connected to price movements. He emphasized that token burning does not guarantee immediate price gains, countering expectations from some community members. His remarks came as Ripple faced backlash after a roughly $750 million stock buyback.
Schwartz cited a chart comparing XRP with Stellar (XLM) to illustrate the point. He noted that in November 2019, Stellar burned half of its supply, yet there was no immediate price surge; any upward move occurred only months later. The discussion broadened to RLUSD stablecoin and real-world asset tokenization (RWA) within XRP’s ecosystem. Some community members argued that liquidity expansion or asset-backed tokens would not directly lift XRP’s price, stressing that demand and holder sentiment ultimately drive prices.
Schwartz argued that token burning can have indirect market effects but does not instantly lift asset value or price. The discussion underscores broader questions about XRP’s structural value and how its price is formed, highlighting that short-term price is influenced by liquidity, use cases, and demand rather than supply reductions alone.
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