Ikenna Uwakwe has been a writer since he could hold a pen. Having a lot of literary works in his portfolio including Poems, Articles and Essays. He enjoys a natural likeness for anything related to technology. His Educational background includes computer science and programming. As a seasoned cryptocurrency enthusiast with a professional writing career path of over two years of blogging for blockchain related companies. Working with various Fintech startups in the past, has aided him to better understand what IT proponents as well as financial Investors look out for.
Amidst the current increase in the involvement of institutional corporations with cryptocurrency, Ripple reportedly sold out an excess of $250 million in XRP with about 40% of these sales been in favor of the institutional investors.
On Wednesday 24th July, Ripple Labs released its quarterly report with regards to the XRP market. This publication mainly focuses on data such as trading volumes and future strategies to dump the company’s XRP token inventory. As this was stated in a recent Twitter post:
The Q2' 19 XRP Markets report outlines the steps we are taking to address the issue of inflated reported volumes and dives deep into XRP performance this quarter. https://t.co/K07ESf4g70 pic.twitter.com/wVXYAPfeIv
— Ripple (@Ripple) July 24, 2019
Per the report, the decentralized hyper-ledger technology company records a 48% increase in its quarterly sales. A cumulative record sales rose from $169 million in Q1 2019 to over $250 million in Q2 2019, while more and more industries and corporations delve into the world of digital tokens. Indeed, established Cryptocurrency platforms such as Ripple are arguably taking full advantage of this trend.
The involvement of these institutional investors in XRP tokens was said to have upsurged the sales benchmark from $61.9 million in Q1 by nearly 73 percent, reaching a soaring range of $107.9 million in Q2. In this report, Ripple also announced that it has raised an excess of $250 million in total sales during the second quarter of 2019, noting explicitly that the company would offer a reduced number of its token supply up for sale, from now henceforth.
Irrespective of this growth rate, the company nonetheless projects a more strategic token sales mechanism in the future as it adds:
“Ripple plans to take a more conservative approach to XRP sales in Q3. As noted, the company switched benchmarks to CryptoCompare Top Tier (CCTT) and will target programmatic sales at 10 basis points of CCTT reported volumes.”
The proposed strategy indicates that the company would focus mainly on where there is higher liquidity. Since the company is alleged to have sold an aggregate of $1.1 billion of XRP, that amounts to 36% of its total sales to various exchanges, Ripple intends to significantly reduce its dealings with certain over-the-counter exchange markets. And as such, a partnership agreement with such data and indices firm as CryptoCompare would help outsource already inflated statistics.
In order to update the benchmark for the overall market volume of XRP as well as ensure a reduced future sales of the token, Ripple Labs, through its affiliate companies Xspring and RippleNet, establishes its plans underway to fund XRP project developments. With regards to the Ripple escrow system, a total of 3 billion XRP would be withdrawn within the span of a quarter (3 months), leaving off 70% (2.1 billion) to be re-invested back into the escrow contracts.
On 3rd of July, Xpring reported that since the inception of XRP about a year ago, it had spent over $500 million on XRP projects. Adding that it would prioritize the creation of new XRP use cases through infrastructure developments and innovative projects.
According to CoinMarketCap, Ripple Labs has almost 43 billion XRP tokens in total supply along with an approximate of $1.3 billion trading volume. Of this enormous token supply, the company is authorized to sell several billion each month. However, these purported monthly sales have been subject to constant criticism.