Decentralized Payment Rail, Ripple, released their quarterly markets report on October 18, in which they deliver an outline of the previous quarter’s activity – and results there of. This particular report, focusing on Q3 2019, indicates that Ripple sold 73.7% fewer XRP tokens in Q3 compared to the 251.51 million sold in Q2. The report also highlights market conditions, as well as other factors – such as FUD – which may have played a role in the company’s performance during that time period.
The company generated all 100 billion XRP tokens when it’s XRP Ledger went live back in 2012, intending the newly minted token to act as a liquidity intermediary between the globe’s myriad fiat currencies. The XRP token’s supply is set up to decrease over time, as a small number of tokens are burned to cover transaction costs on the network. Ripple periodically also sells part of the XRP it holds in escrow back to the community, through direct sales to institutions, and an Over-The-Counter service.
XRP Sales In Q3
In the third quarter of the year, Ripple shifted from the CoinMarketCap volume benchmark to the, more conservative , CryptoCompare Top Tier benchmark and sold significantly fewer XRP, as the firm had stated in their previous report. This effort resulted in 66.24 million in XRP shifted in the period, 50.12 million XRP being sold, directly, to institutions, while 16.12 million XRP went to programmatic sales. Of the 3 Billion XRP released from escrow, only 0.4% were sold, with 20.3 Billion tokens being returned to the vault.
Q3 Market Performance
Ripple’s XRP token took a slight pummeling in global markets during the third quarter, despite now being listed on over 140 digital asset exchanges across the globe. XRP bled 35.4% of it value, Quarter-over-Quarter, on the back of an overall weaker digital asset market capitalization (the crypto market took a 30.4% beating during Q3)
According to CryptoCompare’s volume report, XRP experienced a volatility of daily returns rate of about 3.6%, which is lower than the second quarter’s 5%. Ripple’s XRP coin also appears to be less volatile than peers, Bitcoin and the Ethereum network’s ETH token, which gave a showing of about, 3.9% and 4.3% respectively.
Tackling The Rumor Mill
Ripple also took the time to address some of the misinformation circulating through media and social network conversations, which threaten the firm’s reputation. In Q3, an average of about 50% of the negative conversation, regarding Ripple, on social networking platform, Twitter, was generated by bots.
• Rumors that Ripple had been dumping their escrowed XRP and flooding the market were up 179% in Q3 over the previous quarter. This has been a consistently recurring rumor during the course of the year, however Ripple refuted these claims, stating that the large amount of XRP being moved about (a linchpin for the rumor mill’s argument) is that the large transactions originate from XRP being moved from treasury to escrow management accounts.
• Whispers of Ripple manipulating the price of XRP are not uncommon, and have been around for years. Bots made up 49% of this particular discussion in Q3. Ripple reiterated, that it has no control over XRP’s price and that is left, almost entirely, to traders on the more than 140 exchanges the token is listed on.
Ripple’s quarterly reports are voluntarily disclosed and are said to be an effort, by the company, to promote industry-wide transparency and openness. Q3’s report highlights, not only XRP’s market performance, but on the company’s business operations and continued platform development. Giving an unadulterated picture of the firm’s progress during a specific period of time.
Although XRP hasn’t faired well in the markets during Q3. Ripple itself, appears strong, having made significant inroads in terms of fostering adoption, as well as business partnerships. The firm’s Xpring imprint’s developer platform has attracted a 23 million strong, global army, which spells robust growth in the coming years.
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