The San Francisco-based company moved funds worth about $130.1 million. This token transfer is one among many other enormous transactions to and from Ripple, which have generated resentment within the community as some of its members accuse it of dumping XRP and crashing the token’s price.
Fintech startup Ripple transferred 500 million XRP tokens from its escrow wallet on Sept. 3, according to data from Whale Alert, a live tracker for cryptocurrency transactions.
Indignation within the community
In late August, Twitter user @CryptoBitlord started a Change.org petition entitled “Stop Ripple dumping,” which has since secured 3,063 signatures out of a target of 10,000. “The only logical explanation is that Ripple are dumping on us. And not small amounts either. Literally billions,” the author of the petition wrote.
XRP’s price has been steadily declining over the past few months, although recent financial reports from Ripple have revealed an increase in XRP sales. In the second quarter of 2019, the company sold $251.51 million worth of XRP, which marked an approximately 48% growth quarter on quarter.
Price drop despite new partnerships
Referring to XRP, CryptoBitlord also noted in the petition that a new bank or partnership has been announced – “but still, it manages to keep on dumping.” In August alone, PNC – the United States’ eighth-largest bank, with almost $400 billion in assets – became the country’s first to start using the RippleNet blockchain network for cross-border payments.
Money transfer service Xendpay also joined Ripple’s global network RippleNet to support international transactions. South Korean holding company SK C&C unveiled plans for a donation platform that is based on a Ripple blockchain fork.
Ripple Reports Selling Just $13M of XRP Last Quarter
XRP sales in Q4 dropped 75 percent from the $66.24 million sold in Q3 to just over $13 million, according to Ripple’s XRP Markets Report. The drop is at least partly attributable to a total suspension in programmatic sales, which accounted for $16.1 million the previous quarter. Over-the-counter (OTC) trades also dropped 74 percent quarter-on-quarter (QoQ).
Ripple’s XRP sales fell dramatically in the last quarter of 2019 – at least partly due to change in how the company sells its store of the third-largest cryptocurrency by market capitalization, the company said Wednesday.
“In Q3 2019, Ripple further reduced XRP sales and paused programmatic sales. Ripple maintained this approach throughout the entirety of Q4,” the market report reads. Ripple said OTC trades had remained focused in providing liquidity and utility to partners in “strategic regions,” which included Asia, Europe, the Middle East and Africa.
Ripple announced in June last year that it would adopt a more “conservative approach” to quarterly XRP sales to address concerns of misreported volumes from cryptocurrency exchanges. This came into effect soon after the company sold $251 million worth of XRP tokens in Q3.
Programmatic sales were made directly to exchanges and used to make up the majority of XRP sales figures, accounting for $144.6 million in Q2 2019.
Ripple also said in Wednesday’s report that its On-Demand Liquidity (ODL) tool, which uses XRP as a bridge currency for cross-border payments, had proven to be successful with clients. The dollar value of XRP transacted through ODL increased 650 percent between Q3 and Q4, with transaction volumes increasing 390 percent QoQ.
Excluding the billion tokens released at the beginning of January, the company’s escrow accounts currently hold approximately 48.9 billion XRP tokens.