The company behind the XRP cryptocurrency, Ripple, have recently announced new plans that aim to make the entire Ripple network more transparent, a part of this will also ensure that reporting around Ripple XRP will become more accurate. This might sound a little odd, but remember that Ripple themselves actually own a large majority of XRP tokens. Unlike many other cryptocurrencies, XRP has a company and a group of people fully responsible for its distribution in Ripple, therefore Ripple have to behave in a way that ensures transparency, otherwise their cryptocurrency is at risk of becoming a security - this as you may know is a hot and ongoing debate within US crypto politics and legislation.
According to CoinTelegraph:
“In its announcement, Ripple cites recent reports about fake cryptocurrency trading volumes, such as the one recently released by United States-based asset manager Bitwise, which claims that 95% of bitcoin (BTC) trading volume is fake. However, a new report by Bitwise also claims that fake trading volumes by crypto exchanges do not impact bitcoin’s price. The firm promises to take steps to address these concerns by collaborating with partners in the space, evaluating its approach to XRP data reporting and taking a more conservative approach to XRP sales this quarter. Ripple notes that, as a consequence, XRP’s sales in the second quarter of 2019 will be considerably lower than in the first quarter.”
It does sound a bit like Ripple are admitting to not taking too much care when it came to publishing details about XRP in the past and perhaps now they have realised that this could cause them problems in the future? Either way, at least the company now understands that a great degree of care and attention should be exercised when reporting such figures. People really care about Ripple and XRP, therefore it’s investors should always be kept in the loop in the most transparent way possible, by being informed with accurate data.
This is important as it will help economists and forecasters to create more accurate predictions about the future of XRP as an investment and as a cryptocurrency. Moreover, by increasing trust and by making XRP more transparent, Ripple will be able to encourage some more investment, by convincing those who are on the fringe about investing in XRP.