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Ex-Ripple Official Admits to Running Market Maker on XRP Ledger

Mon, 02/27/2023 - 15:55
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Gamza Khanzadaev
Matt Hamilton faces backlash from several community members after admitting to speculation with XRP
Ex-Ripple Official Admits to Running Market Maker on XRP Ledger
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Former director of developer relations at Ripple, Matt Hamilton, commented on allegations of making money from XRP speculation and admitted to running a market maker on XRP Ledger.

According to Hamilton, there is no secret to this, and the developer himself has openly stated this before, even putting it on his CV when he joined Ripple. The market maker has been operating on a decentralized exchange on XRPL since 2017, the developer says. In doing so, he operated on a market-neutral strategy, placing passive buy and sell orders, but with the aim of making a profit. It is not known whether the former Ripple official is using the bot now, but a year ago it was still running.

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Controversy arises within XRP community

Some members of the community were quick to rebuke Hamilton, claiming that he was engaging in shady activities and influencing the market.

The developer, however, dismissed all accusations of manipulation, reminding everyone that the orders were purely passive and were placed on either side of the order book. The market maker bot does not care about XRP price action — it simply buys and sells when the price reaches a certain value, he explains.

Here's How XRP Is Really Used, Ex-Ripple Executive Explains

As for transparency, Hamilton says he, like any trader, is not obliged to disclose every transaction. Nevertheless, anyone can view the transaction history on XRP Ledger, the blockchain developer noted.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.