- Starting in 4Q2016, the Ripple Company began releasing a quarterly XRP Markets Report to comment on the health of global XRP markets, provide updates on the current state of cryptocurrency markets, and disclose quarterly Ripple (
XRPUSD
) token sales.
- On October 25th, 2018 the Ripple Company released their 3Q2018 XRP Markets Report which detailed that the Ripple Company sold USD$163.3 million worth of XRP in 3Q2018. More importantly, however, USD$98.1 million worth of XRP was sold by the Ripple Company directly to institutions.
- Institutional adoption is absolutely critical to XRP's success -- the foundation of the world's third-largest cryptocurrency is built on financial institutions using XRP as a means to facilitate high-speed payments.
USD$98.1 million worth of XRP sold to institutions in 3Q2018 represents a 400.3% y/y increase, pointing to potentially strong levels of institutional adoption which could, in turn, drive demand, daily volume levels, and above all, promote adoption of the cryptocurrency.
- Upon XRP's creation in 2012, the Ripple Company allocated 55 billion XRP tokens into a cryptographically-secured escrow account. Currently, there are about 50 billion XRP tokens in that escrow account which is roughly equal to the current circulating supply of XRP.
- In 1Q2019, while XRP was trading at its all-time high, the Ripple Company sold a record USD$167.7 million worth of XRP tokens with only 9.90% of XRP in that quarter being sold to institutions -- as comparison, 60% of the XRP sold in 3Q2018 was sold directly to institutions. This event raises concerns that the Ripple Company participated in profit taking the moment that XRP observed any sort of traction. Another concern raised from this event is that the Ripple Company may have oversold XRP tokens in 1Q2018 and exacerbated the cryptocurrency's decline in January 2018.
- XRP is a cryptocurrency with a ton of potential and proven success. Financial institutions across the globe are beginning to implement XRP and Ripple's xRapid platform into day-to-day operations, but does the Ripple Company have the best intentions in mind? Unlike a stock, the Ripple Company's management owes no obligation to the holders of XRP. If XRP sees another price uptick, will the Ripple Company react by rushing to maximize their profit and sell XRP?
- Currently, Quantamize’s AI Machine Learning 3-Day Crypto Signal for XRP is 'Do Not Own' and was updated yesterday morning. Our AI Machine Learnings 3-Day Crypto Signal for XRP maintains an accuracy score of 64.53%.
- Let us know what you think in the comments below! Would love to get some other investors' opinions on this!