Sofiko is a freelance fintech copywriter at Coinspeaker. With a Bachelor degree in International Business and Economics, Sofiko has been deepening her knowledge of an agile innovative industry primary focusing on the robust blockchain technology and cryptocurrencies. As a bank employee, Sofiko particularly keens on crypto and blockchain integration into the established banking systems.
American tech-company Ripple reported more than a double increase in revenue collected from XPR tokens sales, thus shattering the crypto-community to their ground.
The cryptocurrency market has seen better times, some might say. With a bunch of once valuable digital assets losing their shine every day, while investors are wavering out by the trading in uncertainty, save is Ripple’s native tokens, XPR namely.
An explanation has been sought for what makes XPR so indifferent to the major market trends. It includes the Ripple’s suspicious openness towards the government direct supervision as well as the numerous claims made of token false decentralization. Yet as the Q3 2018 XRP Markets Report shows, the company’s income does not much suffer from these allegations.
Astonishing Success of XRP tokens
According to data presented by the Ripple company, the revenue collected from the sales of XRP token in the last four months almost two times exceeds the amount Ripple has gained for the previous quarter.
The company reveals that it sold $163.33 million worth of XRP in the Q3, which is more than double the $73.53 million it sold in the previous quarter. The sales were distributed between Ripple and its subsidiary XRP II, LLC, which saw $65.27 million and $98.06 million sales revenues respectively.
These two Ripple offsprings are catering for institutional investors only, making the scope of revenue very interesting in a part of institutional sales. The report unveils that the largest part of an overall sales upsurge accounts for the institutional direct sales that bounced up to $98.06 million, in comparison to Q2’s $16.87 million.
The remainder of $65.27 million goes to a much smaller increase in programmatic sales that accelerates from a $56.66 million benchmark. Notably that all of this was achieved by the company regardless of the high volatility the market exhibited in Q3.
This includes a price upswing of more than 100% in September 2018, which led to the XRP token taking over Ethereum’s second position in the market. Today, the price of a coin is rather stable with XPR trading for $0,4589.
However, Ripple has some aces under the sleeve, moving on to escrow activity. At the end of last year, Ripple locked up 55 billion XRP in a cryptographically-secured escrow account that was said to create certainty of XRP supply at any given time. Due to that lockup, Ripple has access to only 13 percent of the total XRP in circulation while Ripple’s sales were a tiny fraction of that amount.
An excerpt of the report reads:
“In Q3 2018, 3 billion XRP was again released out of escrow (1 billion each month). 2.6 billion XRP was subsequently put into new escrow contracts.”
Therefore it remains to be seen whether this new lockup would be such a great influencer of investors’ behaviour as the previous turned out to be.
Maltese Exchanges Ready to Seize All of XPR Volume
Another interesting fact could be absorbed from the Ripple’s report. The company confirmed that Malta is leading the world in terms of currently trading XPR’s volumes.
It also has been said that Maltese authorities devised the most flattering rules and regulatory frameworks for crypto-trading, thus Malta became a favorable destinations for those interested in cryptos.
Additionally, Malta lets international companies pay as little as 5 percent in corporate taxes. Prime Minister Dr. Joseph Muscat has called cryptocurrencies ‘the inevitable future of money.’ This has led to a number of large crypto firms, including Binance and OKEX Technology, moving their operations to the Mediterranean island nation.