Ripple to Sell Smaller Amount of XRP as Company Unlocks 1 Billion Coins Worth $390 Million from Escrow Wallet
The crypto industry is a full-fledged one unto itself and has many processes that keep it constantly running such as a trading of tokens on exchanges, the use of crypto to pay for various goods and services and the creation of new services to serve the industry. The process of selling cryptos over exchanges involves the creators of the token in question releasing a certain amount of its to the exchange to be sold and this takes place on a periodic basis.
Ripple has been known to move a certain amount of XRP every month which is believed to be about 1 billion XRP. This process is a continuous one and it has been reported that Ripple has unlocked about $319 million worth of XRP from the Escrow and now this will make the funds available for them to sell to both crypto exchanges and institutional participants in the crypto market. This was reported by Whale alert via Twitter.
🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 1,000,000,000 #XRP (392,024,346 USD) unlocked from escrow at Ripple Escrow wallet
— Whale Alert (@whale_alert) July 1, 2019
A Different Method
This month, however, there seems to be a bit of a difference in the amount of XRP that is being sold after the escrow funds are liquidated. Typically Ripple sells is a small portion of the XRP that is unlocked and the money is returned back into the escrow at the end of the month and the cycle repeats the next month. According to reports, $169.40 million worth of XRP also available in January February and March.
In this month, however, it was reported on June 3, 2019 that the company has announced that the sale of XRP will be lower in the second quarter of this year due to a report from Bitwise that concluded that there was a significant amount of fraudulent trade volume being reported by the crypto industry to the tune of 95 percent.
“We are evaluating our approach to XRP volume reporting, including reviewing new options and requirements for sourcing market data…
In the short term, this means Ripple’s sales of XRP in Q2 2019 will be substantively lower (as a percentage of reported volume) than in the previous quarter – with our stated target of 20bps for programmatic sales of XRP volume, as reported by CoinMarketCap, likely dropping to less than 10bps. Longer term, by being more demanding about our expected standards for market structure and reporting, we hope to begin raising the bar industry-wide.”
It was not stated whether this change will be a temporary one or will continue to the third quarter of the year but it does show that Ripple is throwing its weight behind the movement that consists of several leaders within the crypto industry who are addressing the issue of fake volumes and they are trying to correct this motion within the industry. This is because the industry is seeing a new age of maturation and does not need to have a reputation of being fraudulent lest investors are discouraged.
“We hope others in the crypto ecosystem will follow our lead, and ultimately, that our joint efforts will fuel a growing level of trust, among institutions and consumers alike, and the entire digital asset market will thrive. Until we do this, we cannot expect to see widespread adoption of digital assets or Blockchain Technology,”