Blockchain based payment rail peddler, Ripple, released another billion XRP tokens (valued at $225 Million) from its cryptographically secured escrow wallets. On December 1st, Twitter account, Whale Alert (dedicated to monitoring gargantuan digital asset transaction) reported that the firm had, once again, moved funds from escrow. The announcement prompted bearish rhetoric from Crypto Twitter, who expressed fears of a further XRP price drop.
The twitter community came alive, following the announcement, with some users going as far as referring to Ripple’s business model as a scam. Ripple routinely finds itself fielding negative commentary from the twitter community. Viewed as being a centralized entity for controlling about 55% of the total supply XRP tokens, Ripple has release 1 billion tokens from escrow every month. The release schedule was designed to assure the crypto community that the firm, being XRP’s largest stake holder, would not act maliciously by dumping XRP onto the market all at once – which would surely crash the token’s price.
Ripple usually sells a portion of the funds unlocked from escrow, and was deemed responsible for exacting a certain amount of selling pressure on the 3rd biggest digital asset, by market capitalization. The company, who’s XRP token is down about 40% year-on-year, has recently come under fire from detractors who accuse Ripple of dumping the token on XRP enthusiasts in an effort to woo incumbent financial institutions.
Ripple CEO, Brad Garlinghouse, shrugged off the negative chatter, recently stating that the firms was XRP’s biggest stakeholder, and as such, held the most interest in the asset’s success. He went on to say that the routine sale’s were essential to the continued development of the Ripple ecosystem. The payment rail, as stated in its most recent quarterly report, will be taking a more moderate approach to it’s monthly sale schedule. The first only sold 73.7% fewer XRP tokens in the third quarter, compared to the previous quarter.
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