Ripple, one of the biggest crypto companies in the world, has unlocked the XRP token worth about $390 million from escrow. This makes the funds available for the company to sell to cryptocurrency exchanges and institutional participants.
Ripple typically sells a relatively small portion of the XRP that’s unlocked and returns the rest back into escrow at the end of the month. According to the firm’s last report, Ripple sold just under $170 million worth of XRP over the course of the first three months of the year.
But this month could be different. On June 3rd, the firm said that its sales of XRP will be significantly lower in the second quarter of this year in light of a report from Bitwise
“We are evaluating our approach to XRP volume reporting, including reviewing new options and requirements for sourcing market data…
In the short term, this means Ripple’s sales of XRP in Q2 2019 will be substantively lower (as a percentage of reported volume) than in the previous quarter – with our stated target of 20bps for programmatic sales of XRP volume, as reported by CoinMarketCap, likely dropping to less than 10bps. Longer term, by being more demanding about our expected standards for market structure and reporting, we hope to begin raising the bar industry-wide.”
The firm didn’t reveal anything in terms of whether the change will continue into the third quarter of the year.
Ripple joins a chorus of industry leaders and innovators who are currently dealing with accusations of false volumes and who are pointing to trust and integrity as important challenges for the crypto space.
“We hope others in the crypto ecosystem will follow our lead, and ultimately, that our joint efforts will fuel a growing level of trust, among institutions and consumers alike, and the entire digital asset market will thrive. Until we do this, we cannot expect to see widespread adoption of digital assets or blockchain technology.”