Ripple reduced volumes of the escrow account again and again
We have already reported on the analyses of the rating agency Weiss Ratings. The independent experts regularly deal with the developments on the cryptomarket. Again and again, the analysts question, for example, the movements in the area of market capitalization. But the company also deals with other questions regarding changes in the industry. In the current case, one of the issues being discussed is the possible consequences of the latest sales in the ripple (XRP) for digital currencies. Weiss Ratings is harshly critical of the extensive transactions of the past month. Even the term “dumping” falls in the agency’s analysis. Strictly speaking, it is even a condemnation of the measures by the provider itself. The agency regularly publishes assessments of the importance of coins such as Bitcoin or Ethereum. Of course, Ripples XRP is also mentioned.
Has Ripple always sold too many tokens?
On average, the steadily expanding company Ripple has thrown a billion XRPs onto the market every month since the end of 2017. The contingents always came from the company’s own escrow account. The analysis firm Weiss Ratings clearly doubts that these activities were meaningful and beneficial for the Ripple share price in the current evaluation. On the first day of each new month, the new volume was released in the amount in question. In view of recent price movements, the experts do not see any positive effect on the market. It is not the first criticism of this practice. The community as a whole also repeatedly expressed rather negative opinions about the measures. The price changes seem to prove the critical attitude right.
Via the social media platform Twitter, Weiss Ratings most recently attested that Ripple’s growth was influenced in a rather negative way. The new statement explicitly refers to the latest sale at the beginning of 2020, which had an equivalent value of around USD 192 million.
Many coins are returned to the previous stock
As a result, the activities at Ripple also created pressure in general. Many owners of XRP could see themselves induced to make a sale themselves. But Ripple itself has already announced several times that they have no influence on the price. This statement is supported by Grayscale Investments, for example. In terms of centralization compared to alternatives such as other currency systems such as Bitcoin or Ethereum, it says that XRP is still a step ahead of both competitors. In Q3 of 2019, sales fell from the equivalent of a good USD 250 million to USD 66.2 million in the same period. Furthermore, Ripple wants to further reduce its release of own tokens in 2020, especially since there is supposedly a significant return on the mentioned escrow account. Since October 2019, the value is said to have been over 90%. Will Ripple’s own annual report confirm these data?