Ripple's XRP Sales Raise Investor Concerns Amid Dormant Wallet Discovery

According to Cointelegraph, Ripple Labs has been given the green light to sell XRP tokens to raise operational capital, as stated by the company's chief technology officer. This development has raised concerns among cryptocurrency investors. Pierre Rochard, vice president of research at Riot Platforms, expressed his views on March 5, stating that XRP is not a security because Ripple does not owe any utility or obligations to investors. He warned that Ripple is free to sell XRP, and investors have no recourse other than to sell their holdings as well. Rochard emphasized that investors are not investing in Ripple itself but are merely acquiring tokens that are created without intrinsic value. David Schwartz, Ripple's chief technology officer, supported Rochard's perspective, asserting that Ripple will act in its own interest and not necessarily in the interest of investors. This statement comes amid increased scrutiny of Ripple's XRP reserves, following blockchain investigator ZachXBT's revelation of a dormant XRP wallet potentially linked to Ripple co-founder Chris Larsen. The wallet, reportedly holding over $7 billion worth of XRP, has been inactive for over six years, suggesting Larsen may have lost access. Despite this, XRP experienced a brief rally alongside Cardano (ADA) and Solana (SOL) after U.S. President Donald Trump announced the inclusion of these altcoins in the U.S. crypto strategic reserve. However, the rally was short-lived, as XRP failed to maintain its peak value of $2.99, dropping to $2.50. Analysts caution that the altcoin rally may not be sustainable, as Trump's crypto reserve plan requires congressional approval, a process that could lead to investor disappointment. Aurelie Barthere, a principal research analyst at blockchain analytics firm Nansen, noted that establishing a reserve by purchasing new tokens is complex and time-consuming, requiring a congressional vote. This uncertainty adds to the challenges facing XRP and its investors, as the market awaits further developments in the regulatory landscape and Ripple's strategic decisions.