Ripple has sold 5.1 Billion XRP from Ripple’s Escrow Wallets since 2017
Ripple is the parent company of XRP, currently owning more than half of the total supply of XRP. In addition to cross-border money transfer activities, Ripple has set up the escrow program to manage XRP sales. And at press time, the number of XRP held in Ripple’s escrow wallets has dropped from 55 billion XRP at the end of 2017 to 49.9 billion XRP.
Ripple’s Escrow Wallets constantly sells XRP
On average per month, Ripple will sell 212.5 million XRP to cryptocurrency organizations and exchanges. According to XRPArcade’s estimates, at this rate, it will take around 235 months (19 years and 7 months) for the final deposit to complete. And it is estimated that it will be in July 2039 (10 months ago the expected finish was April 2039 at a rate of 214.3 per month).
In August 2019, Bloomberg released a research report on Ripple’s sales. According to them, this is the cause of the decline of XRP in 2019. In 2019, the XRP price is estimated to have decreased by 39.2%. However, Ripple has consistently denied that its sales have any impact on the XRP’price.
A report from Bloomberg stated:
“Ripple, for its part, disputed the increase [in sales]. Programmatic sales of XRP ‘as a percentage of volume and the actual supply inflation rate were lower ‘than for Bitcoin or Ether, it said in a statement… Sales had been tied to trading volumes reported by exchanges, and recognizing that some platforms were misreporting volumes, Ripple has ‘substantially reduced XRP sales, ‘a trend that’s expected to continue this quarter.”
Brad Garlinghouse, Ripple CEO
Also in August, Brad Garlinghouse, Ripple CEO, spoke out to defend Ripple. To him, Ripple’s sales are used to fund businesses and invest in blockchain and cryptocurrency companies. And this has nothing to do with the XRP’s price.
2/ XRP sales are about helping expand XRP’s utility – building RippleNet & supporting other biz building w/XRP ie Dharma & Forte. Reality is we DECREASED our sales by volume Q/Q and since then the inflation rate of XRP circulating supply has been lower than that of BTC and ETH.
— Brad Garlinghouse (@bgarlinghouse) August 27, 2019
To date, Ripple has sold a total of $ 66.24 million of XRP in the third quarter of this year, down from $ 251.51 million in the previous quarter.
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