There have been many controversies within the cryptocurrency industry which claim that the crypto market is easily manipulated. While some of the controversies are addressed, many still remain unanswered and the investors are left clueless. One of the names within this controversy is 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.
XRP is the 3rd largest cryptocurrency based on market capitalization and has been one of the best performing cryptos during the bull market in 2017 and 2018. This year, 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.
Quite recently, Whale Alert, the live crypto transaction tracker revealed that Ripple has moved 1 billion XRP tokens from its escrow wallet.
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. Interestingly, this time the company sent the same amount back into escrow just seven minutes later. Many members of the XRP community are now claiming that Ripple is trying to crash the price of XRP.
Earlier in September, 250 million XRP was moved between two wallets that are controlled by unknown individuals.
Throughout 2019, Ripple has been selling their XRP holdings for unknown reasons and the price of the token is going down. This fiasco had escalated to such an extent that in August, a Change.org petition dubbed “Stop Ripple Dumping” was started by a crypto twitter personality and an XRP advocate going by the name of Crypto BitLord.
Following this, the XRP community had also threatened to Fork XRP if Ripple did not address the situation.
XRP is often accused of being a Centralised project since Ripple controls 60 per cent of XRP. Ripple, however, claimed on several occasions that it is selling these XRP tokens to invest in different firms that would benefit the XRP ecosystem, and it’s selling of the tokens have no effect on the price of XRP as, despite the sales, XRP’s inflation has remained lower than Bitcoin and Ethereum.
The Company’s quarterly report also stated that Ripple has been selling these huge amounts of XRP to fund various operations. Brad Garlinghouse, CEO of Ripple, has also shunned these acquisitions in a CNN interview claiming that these sales are for the better of the XRP ecosystem.
Ripple has recently completed the acquisition of its $50 million stake in Moneygram. The companies have entered into a partnership that uses Ripple’s on-demand liquidity to enable cross-border payments and foreign exchange settlements with digital assets.
However, the price of XRP was not affected by this move and it remained in the red trading at $0.217. The XRP holders are in a dilemma as they remain clueless about the future of XRP, while Ripple’s Q3 report claims that it plans to adopt “a more conservative” approach to its monthly sales.” The report also reveals that the total XRP sales in Q3 2019 were $66.24 million, this is a huge reduction from the previous quarter’s sale of $251.51 million.