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In comparison to the overall crypto market fall, Ripple considers this to be its best performance in Q2 so far. The company also boasts on adding new customers to the XRP ecosystem.
On Tuesday, July 24, Ripple released its Q2 report providing some insights into how the cryptocurrency performed with respect to the overall market scenario and also in comparison with its competitors and peers. The report states that in the second quarter, the XRP sales were a “drop in the bucket” registering a decline to more than half of the previous quarter.
As per the report, in Q1 2018, the blockchain startup sold $167.70 million XRP while this number dropped to $75.53 million in the Q2 2018. This marks nearly 55% decrease in the XRP sales just in a matter of one quarter. Moreover, out if the total XRP volume traded globally in the second quarter, the company $56.66 million XRP programmatically which is 0.125 percent or 12.5 basis points of the total volumes. The programmatic sale of the XRP tokens dropped by 63% in comparison to the previous quarter when the company sold $152 million XRP.
The direct sales carried out through Ripple’s subsidiary XRP II, LLC, a registered and licensed money service business (MSB), increased marginally. The direct sales in the Q2 were $16.87 million, up from $16.6 million in the first quarter. The report also notes that XRP exhibited less volatility in Q2 with its price decline around 9.0 percent which was in line with Bitcoin’s 8.2 percent decline. The report states:
“The decline in both volume and price was consistent across the majority of digital assets, as many moved with tight correlation. It’s also important to note that despite Ripple having its best quarter ever in Q2 — in terms of customers signed — XRP’s price continued to decline with those of other digital assets, underscoring XRP’s independence from Ripple.”
On the other hand, Ripple also boasts about bringing new customers to the XRP ecosystem. In Q2, the company added two major customers – micropayment application Coil, and content monetization platform SB Projects. The report mentions that Coil will use the XRP tokens for facilitating “bite-sized” purchases of media. On the other hand, SB projects will be using the XRP tokens to improve artists’ ability to monetize and manage their content.
Both of these new entrants to the Ripple ecosystem will also get the support of Xpring, which is a new initiative released by Ripple to work with projects and companies run by successful entrepreneurs and are building out the XRP ecosystem.
However, Ripple has been facing continues onslaught of lawsuits with many people claiming that the XRP tokens should be treated as securities. If at all Ripple falls into the “securities” bracket in the future, it would mean that it will be under the ambit of stricter regulations with more taxes on capital gains.
Moreover, in the last month, Ripple CEO Brad Garlinghouse clarified that the Ripple brand is different than that of XRP, during CB Insights’ Future of Fintech conference. Ripple Labs later provided a detailed explanation of how the two differ.
“XRP is not a security for three reasons: if Ripple, the company, shuts down tomorrow, the XRP ledger will continue to operate; it’s an open-source, decentralized technology …. if you buy XRP, [you are] not buying shares of Ripple – buying XRP doesn’t give you ownership of Ripple,” stated Garlinghouse clarifying that XRP can’t be considered as securities.