Ripple and XRP are subject to controversial debate. Mainly due to the fact that Ripple itself, still holds about 55% of all available XRP. Due to the increasing criticism the last few weeks and months, has Ripple in December decided for the first time to sell XRP from the Escrow. But apparently, it has pleased the XRP Community a little early. Ripple has transferred without notice a few days ago, a total of about 220 million XRP in a Wallet of an exchange. Let’s look at what does it exactly mean to.
Contents
Ripple has a total of 56.7 billion XRP
The centralized distribution of the XRP always raises questions in relation to the influence of the Ripple on the course. Overall, Ripple has 56.7 billion XRP. These can be split in Escrow (49.9 billion), and Ripple itself (6.8 billion). Not to forget is that there are a total of 100 billion XRP.Source: Ripple.com; Last Update: 24. November, the XRP in the Escrow are gelocked and will be released monthly in the amount of 1 billion XRP to Ripple, to sell or to invest. Normally, the company uses only a part of it, and transferred the Rest back into the Escrow. In contrast to the Escrow, it is Ripple free to use its own Funds in the amount of 6.8 billion XRP at any time.
220 million XRP flow to Bitstamp
After the Ripple has transferred to the shared XRP from the Escrow to the beginning of the month back in the Escrow, was the celebrated, of course, directly from the Community. Because the regular sales and investment increase the amount of XRP in circulation, and have a long term negative effect on the price.11. December has transferred Ripple 220 million XRP in a Wallet from Bitstamp. Bitstamp is not only one of the largest exchanges in the world, but is part of the On-Demand Liquidity (ODL, formerly xRapid) providers. On Bitstamp a few ODL payment corridors run. Therefore, it is currently expected that this transaction will be used in the amount of approximately 50 million USD for the liquidity of the corridors. Of course, a sale can not be completely ruled out. An official Statement from gox, it was not until now.
Here we go, on goes the dumping…err… ‘adding liquidity’ ? pic.twitter.com/qmqpkK5TuM— RobbieBTC (Jan 3?₿) (@geckozoo) December 11, 2019
On-Demand Liquidity and the impact on the price
As we have already recently reported, the use of ODL is currently in the all-time high. Therefore, it is likely that additional liquidity of Bitstamp has been requested to the increased demand. Bitstamp is acting as a Market Maker, to ensure the necessary liquidity to provide. This is also one of the reasons why influenced the XRP exchange rate of the ODL experience. It is not only the natural liquidity of XRP on the exchanges, but additional liquidity artificially increased.Theoretically, the Ripple has more than 55 billion XRP to bridge liquidity bottlenecks. Thus, we need to make us in a timely manner any hopes that the use of XRP as a bridge currency will have a positive impact on the course. We can even go a step further and say that, as a result, the number of XRP increases in the market and accordingly the market capitalization. If so from the Retail side (private investors), the demand does not increase, will not develop in the course surely in a positive direction.Ripple with up to 50x trade and sign up bonus secure. Sign up today for free on Bybit, and secure you a Deposit bonus of up to $ 60 USD. Here you can not only rising, but also falling share prices. The registration takes 5 minutes and there is no KYC needs to be carried out. Most Bybit today and see for yourself! Sign up now for freeHow do you see the influence of the Ripple on the XRP price?Come on in to our Telegram Chat and talk with the experts and the Community!
Subscribe to our News channel to not miss any News.
Crypto Monday is not a simple message, we are a Community! Come on in our Forum and join the exchange of knowledge and benefit from the swarm intelligence of our members!You look better Videos to read the article? Then look at our Youtube Channel over.(Image Source: Shutterstock)