Crypto commentator Zach Rector made a notable claim this week. He says Ripple is close to completing its XRP distribution plan. Once that happens, he expects XRP sales to stop. Rector describ
Crypto commentator Zach Rector made a notable claim this week. He says Ripple is close to completing its XRP distribution plan. Once that happens, he expects XRP sales to stop.
Rector described a supply shock that moves from speculation into reality at that point, and that event will favor holders who already own the token.
His argument rests on a straightforward premise. Ripple has been distributing XRP over time, and that process is finite. When it concludes, the continuous release of tokens into the market stops. Rector believes that the shift will significantly tighten supply and potentially push up XRP’s price.
The Context Behind the Claim
Rector’s comments came in response to a broader conversation about Ripple’s business model. Prominent YouTuber Jungle Inc noted that Brad Garlinghouse projects a $1 billion revenue run rate by the end of 2026, a figure that excludes XRP holdings entirely.
RLUSD’s market cap is roughly $1.6 billion. Ripple Prime (formerly Hidden Road) clears trillions annually and opens a direct path into institutional finance. Jungle Inc argued that Ripple is building a full financial infrastructure company, not merely sitting on XRP reserves.
Digital Asset Investor reinforced that point, noting that critics spent years claiming that Ripple’s only revenue source was XRP sales. That argument no longer holds.
The Supply Shock Argument
A supply shock occurs when the available supply drops while demand holds steady or rises. Rector’s position is that XRP holders currently benefit from accumulating before this transition. Once distribution ends, acquiring XRP becomes harder, and price pressure builds from the supply side.
This matters because Ripple’s business now generates revenue independently. Payments, prime brokerage, stablecoin infrastructure, and treasury tools all contribute. The company does not need to sell XRP to fund operations. That removes a consistent source of sell pressure from the market.
Several people questioned whether XRP would ever gain the adoption needed to sustain a supply shock scenario, with some saying Bitcoin’s dominance over XRP price movement makes the timeline unpredictable.
One commenter argued that people would need access to XRP for it to serve as the world’s reserve currency. He also countered the idea of a supply shock with XRP’s large circulating supply of over 60 billion tokens and the transaction speed ensures tokens are freed up quickly for reuse.
One community member suggested that XRP’s role as a bridge asset would prevent its price from going up. Another questioned the validator structure, as validators would have to approve the end of escrow sales if distribution is to stop, as Rector suggested.
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