Ripple says it plans to review its standards for reporting on crypto volume and market data.
The move comes after intense scrutiny and criticism of the way crypto exchanges report trading volume data. A recent report from crypto index and beta fund provider Bitwise found that about 95% of the volume reported on CoinMarketCap is fake.
In response, Ripple says it will review and modify its approach to reporting volume data in its Q2 XRP Markets Report, which will likely be released in early July. It will also take a closer look at its sales of XRP on the open market.
The company is highlighting three ways it’s working to analyze and revamp its future reporting standards.
- “Actively working with trusted partners” to better understand the scope and scale of the issue
- Evaluating its approach to XRP volume reporting, including reviewing new options and requirements for sourcing market data
- Taking a more conservative approach to XRP sales this quarter as it works to learn more about fake volume in the crypto space
Ripple is cutting its programmatic sales of XRP in half, which is essentially the sale of XRP to crypto exchanges. The startup sold $107.49 million in programmatic sales of XRP in the first quarter of this year.
“In the short term, this means Ripple’s sales of XRP in Q2 2019 will be substantively lower (as a percentage of reported volume) than in the previous quarter — with our stated target of 20bps for programmatic sales of XRP volume, as reported by CoinMarketCap, likely dropping to less than 10bps.
Longer term, by being more demanding about our expected standards for market structure and reporting, we hope to begin raising the bar industry-wide.”
The industry as a whole needs to reevaluate its approach to reporting on crypto trading volume, says Ripple, in order to ensure the emerging space earns trust from regulators, investors and the mainstream.
“We hope others in the crypto ecosystem will follow our lead, and ultimately, that our joint efforts will fuel a growing level of trust, among institutions and consumers alike, and the entire digital asset market will thrive. Until we do this, we cannot expect to see wide-spread adoption of digital assets or blockchain technology.”