Investors Analyze Ripple’s Multi-Million Dollar Sale of XRP As Bitcoin (BTC) and Crypto Markets Surge
The Ripple and XRP community is debating whether Ripple’s constant sale of the digital asset is keeping its price from rising while the rest of the crypto market surges.
XRP has dropped 14% in 2019, from $0.3525 to $0.3022, according to CoinMarketCap.
Meanwhile, Bitcoin has jumped from $3,764 to $5,926 – a 57% increase – as the overall market cap of all cryptocurrencies has surged 49%, from $125.46 billion to $187.03 billion.
XRP Year-to-Date Chart
Ripple owns more than half of the total supply of XRP and placed most of it in escrow in 2017. Each month, the company unlocks and sells portions of its holdings to crypto exchanges and institutions in over-the-counter transactions. Ripple says it uses the funds to power its business and boost the XRP ecosystem.
In the first quarter of this year, Ripple sold $169.42 million worth of XRP. Since 2016, according to The Block, Ripple has sold roughly $890 million in XRP, worth 2.96 billion XRP, at its current price.
In a new post on Reddit/Ripple, user Claussph asks, “How can XRP increase in value (significantly) before entire escrow amount is released?”
Here’s a look at some of the top responses.