Ripple and the associated crypto-currency, XRP have taken care of in 2019, for a lot of news. Again and again, it was reported in the last few months about new partnerships. Accordingly, Ripple was able to push the XRP adaptation forward.However, not all news have pleased XRP investors. In the past few weeks to Ripple increasingly criticised. It was mainly to XRP sales from the Escrow, a kind of trust of Ripple.Also this month, was again given 1 billion XRP to the Escrow and can be sold by Ripple-free, or invested. As the Ripple itself published guidelines. Most of the time the Token OTC (Over-The-Counter) to be sold to crypto-Exchanges and institutional investors. The remaining Coins that were not sold in the respective month, flow for 55 months in Escrow. These regulations do not ensure that Ripple has every month more than 1 billion XRP available.Play now for free the world’s leading Social Trading network. Copy on eToro’s most successful traders and benefit from their Expertise or trade a variety of Assets such as crypto-currencies, commodities, and stocks. Create a free Demo account with$ 100,000 and see for yourself!
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Ripple rate is under pressure of criticism justified?
The sales are on the one hand, for the cash flow of the project is necessary. But where there is light, there is known light and shade and there are also voices that see the XRP sales is very critical. For investors, the inflation rate for a crypto-currency is an interesting one. This is increased by massive sales, of course.Nevertheless, it must be said that most of these sales are not handled through official Exchanges, but the OTC. This has the consequence that, although the rate of inflation of XRP is a Dump but the increase is rather unlikely. Most of these Large investors buy the Coins with a long-term horizon. Therefore, they do not sell their XRP to the purchase directly. In consequence, it is not usually a Dump, and the Ripple (XRP) exchange rate continues to be from the sales unaffected.Nevertheless, the sales and investments of the Ripple increase with XRP in circulation Token, and thus the market capitalization. The long term leads to an additional pressure on the XRP price. Criticism Ripple also for its high centralization. More than 50% of all XRP are still in the possession of the Ripple.On eToro, you can also bet on falling prices. Try the free demo account today and discover the Trader in you!75 % of private CFD accounts lose money. No EU investor protection.
Ripple always sold more XRP according to Bloomberg
The criticism of Ripple has recently taken shape in the Form of a report from Bloomberg. Some time ago, Bloomberg reported:
Ripple has lately been more aggressive in their sales. The 251,5 million dollars in the last quarter were almost 50% above the 169,4 million dollars, which were sold in the first quarter.
The response of the Ripple responsible, of course, not have to wait long. It was argued that the sales of XRP from the Escrow provided for a lower overall inflation rate than Bitcoin or Ethereum. At this point it should be mentioned that the Ripple CEO is with the comparison to the inflation rate of Bitcoin correctly. This is much lower than that of XRP and will be halved again next year.
The sale was bound by the stock exchanges, reported trading volumes and in view of the fact that some platforms have reported the volumes wrong, Ripple is reduced in the sale significantly, a Trend that is likely to continue in this quarter.
In summary, we can say that the massive sales of XRP must be observed by Ripple itself is very critical. Nevertheless, it is very unlikely that it could lead to a XRP price Dump. Hopefully, a soothing message for XRP InvestorenWas do you think of the strategy of Ripple? Are you invested in XRP? Come in to our Telegram Chat and talk with the experts and the Community. Subscribe to our News channel to not miss any News. (Image Source: Shutterstock)