Ripple, the third-largest cryptocurrency based on market capitalization and has been one of the best performing cryptos during the bull market in 2017 and 2018. 2019, however, has not been the year of XRP as the price of the token has been tumbling down almost 93% from 2017 highs, and the community is blaming Ripple.
The San Francisco based blockchain company holds 60% of the total supply of XRP, which the native cryptocurrency used in various payment solutions developed by Ripple. Despite being the highest shareholder, Ripple has never acknowledged its relationship with XRP.
Half a billion XRP released
As per data from crypto monitoring resource Whale Alert on Feb. 1, Ripple has once again unlocked 500 million tokens from its escrow as a part of its planned release. Whale alert noted a single transaction of 500,000,000 tokens worth $119.5 million leaving Ripple’s escrow.
Back in 2017, Ripple placed 55 billion XRP in an escrow wallet and announced that it would release 1 billion XRP every month to build liquidity and boost the XRP ecosystem. The recent move is the latest in the series of planned releases, which the company has scheduled to occur on the first of each month for 55 months.
XRP is often accused of being a Centralised project since Ripple controls 60 percent of XRP. Throughout 2019, Ripple has been selling their XRP holdings for unknown reasons and that has been wrecking the token’s price. This sparked several controversies among the XRP community, claiming that Ripple is trying to crash the price of XRP.
Ripple had already started 2020 by releasing $192 million worth of XRP tokens from its escrow claiming it will be used for developing its various products, incentivizing market makers and perhaps selling XRP to institutional purchasers. The move, however, had no effect on the price of the token as it remained in the red.
This time XRP investors did not feel left out as the token is up almost 26% from its January lows. Bullish action on Bitcoin (BTC) markets took many major altcoins significantly higher. It’s unlikely that these gains would continue without Bitcoin also moving upwards
Ripple continues to make the headlines
Despite XRP’s poor performance throughout 2019, Ripple had formulated multiple big partnerships with dozens of financial service providers and institutions, including Euro Exim Bank, SendFriend, MoneyGram, and Finastra.
Moneygram, the global money transfer giant has been implementing Ripple’s ODL in its daily operations since June 2019. Since then its use has grown to handle 10% of MoneyGram’s total transaction volume between the United States and Mexico.
Earlier, The Daily Chain had reported that Ripple CEO Brad Garlinghouse, teased that the company could also go public within a year. Last month, Ripple had raised a staggering $200 million in a Series C funding, which is the last step before a company goes public. The Series C round valued the blockchain firm at $10 billion.