A new report is setting off fresh debates about the performance of Ripple’s XRP. The argument is about XRP’s performance since the start of 2019. Many have complained about the way Ripple handles the XRP token. Fingers have been pointed at Ripple over its sales of XRP.
XRP (XRP) Price Today – XRP / USD
Ripple Owns Half the Total Amount of XRP in Circulation
It should be recalled from an earlier report on Friday, that Bloomberg released the result of its analysis of XRP’s performance. Per the report, Bloomberg cited Ripple’s ownership of no less than half of the entire supply of the XRP token. It also touched Ripple’s routine sale of the virtual asset as potential reasons behind XRP’s recent sluggish performances.
XRP Price is down by 22% Year-to-date
The report issued by Bloomberg also references a certain petition that has now garnered about 2,000 signatures. The petition is urging Ripple to quit selling the XRP token. Selling XRP is an activity that, Ripple says it does routinely to run its business as well as fund startups. The goal is to create capital for initiatives that aim to boost XRP adoption and Blockchain technology overall. Here is how coin Metrics puts it:
“Ripple’s trade reports show that the company has been selling the XRP token at an increasing pace. Although Ripple said, it doesn’t view it in that light on Friday. The networks Co-founder, Jed McCaleb, who has left Ripple, sells a whopping 500,000 XRP on a daily basis.”
Ripple has moved quickly to issue a response to Bloomberg’s claims. The Blockchain network reportedly disputes Bloomberg’s claims that its sales of the XRP coin are affecting the coin’s price action. The price of XRP is down by 22.91% year-to-date. The digital asset joins Stellar which is 36.99% down and IOTA 22.71% down in the same period. Tron is also among the affected coin’s having seen its value drop by 5.26% year-to-date.
Ripple’s Statement on the Matter
Ripple, had this to say in response to Bloomberg: “Ripple, for its part, outrightly dispute the alleged price increase. The programmatic sales of the XRP token, as well as a percentage of its volume and actual supply inflation, were lower’ than that of Bitcoin or Ether.”
These sales have reportedly been tied to the trading volumes that are reported by exchanges. Hence, recognizing that some of these platforms are misreporting trade volumes, Ripple has ‘substantially cut down the sale of XRP. A trend that it was expected to continue with this quarter. Ripple also said that the discrepancies that Coin Metrics found regarding XRP, come down ‘to the issue of timeline.
Finally, this article also kicked off a discussion relating to the Ripple subreddit. Some members of the ecosystem and analyst were saying that Bloomberg’s report is actually cherry-picking its price data on XRP and other cryptos. While a good number of others are saying that the financial outlet shows proof of a legitimate argument.