A crypto enthusiast who goes by the name Crypto Bitlord on Twitter recently created a petition, which wants Ripple to stop dumping new XRP into the market. His argument is that if Ripple stopped the supply of new XRP, it would give the crypto coin a price boost. This petition looks quite logical and it has garnered a lot of support from the XRP community.
About the Petition
The petition was created on August 5, 2019, and was posted to Twitter via the Crypto Bitlord account that has over 102,000 followers. Thus far, the petition has received over 1,000 signatures.
As you know, Ripple continue dumping billions & billions of $XRP on the market, crashing the price!!!
— CRYPTO BITLORD (@Crypto_Bitlord) August 5, 2019
The petition noted that Ripple had been continuously dumping billions of XRP into the market, which was causing the price of XRP to crash. Additionally, the petition noted that the XRP community believed in the crypto coin and Ripple needed to stop dumping the coins into the market.
The Blame Is on Ripple
The petitioner noted Ripple held over half the supply of all XRP. Ripple will usually release tokens into the market as part of its effort to boost the use of the Ripple ecosystem. However, this was having a negative effect on the prices of the crypto coin.
Ripple originally had 55 billion XRP in escrow. These coins were held in a billion accounts. Each month, the company releases some of the coins by unlocking an account monthly. However, it does not appear that Ripple intends to change tact. They will continue to release XRP as dictated by market conditions.
While some XRP fans might not be happy with the actions of Ripple, these XRP releases have various benefits. A good example is the company’s recent partnership with MoneyGram. The money remittances company will utilize Ripple’s xRapid system for cross-border payments. The move will add value to the XRP ecosystem, which cannot be achieved by simply reducing the supply of the coins.
The MoneyGram Deal
The deal between MoneyGram and Ripple is a huge deal, according to the CEO of Ripple. He said that the company was looking to make more deals in the near future after the $30 million deal with MoneyGram was concluded.
In the deal, Ripple bought a 10% stake in MoneyGram, which is the second biggest remittances company globally. They also have an option to grow their investment by $20 million within a two-year period. The MoneyGram CEO revealed that the company would now be using the xRapid network for instant settlement during cross-border transactions. Many of Ripple’s clients such as Standard Chartered, American Express, and Santander do not use this system.
This Deal is Bigger than the Libra Whitepaper
The Ripple CEO believes that this deal is bigger than the release of the Libra whitepaper. Between Q1 and Q2 2019, xRapid volumes have increased by 170%. According to the Ripple CEO, volumes could surpass the $1 billion mark in 2020.
Current estimates are that Ripple signs two deals with financial firms each week. It already has over 200 deals under its belt globally. This year alone the Ripple CEO expects the company will sign 100 new deals. About 20% of those are expected to involve xRapid and XRP.
While the news of deals by Ripple is good, they have not translated into better prices for XRP, which is what angers some in the XRP community. The counter-argument is that by releasing more XRP, it will insulate the crypto coin from price manipulation.
Whether this petition will bear fruit is still to be seen.