- New report shows Ripple Inc. sold over $13million USD over Q4 2019, representing the lowest “dump” in three years.
- Despite the company’s model change to sell exclusively on over-the-counter (OTC) markets and institutional investors, the price of XRP dropped over 20% during the same quarter.
- With Ripple’s declining volumes on “dumps”, what next for XRP?
As Binance completed their most recent burn of BNB earlier in the week, reports showed Ripple Inc.’s Q3 2019 sale of XRP tokens in the market was the lowest in almost three years. According to a detailed tweet on the sale of XRP by The Block’s Larry Cermak, Ripple Inc. completed over $13 million USD in sales during Q4 2019, representing a huge 95% retraction from all-time high sales of $251 million in XRP completed in Q2 2019.
Ripple only sold $13 million worth of XRP in Q4, which is the lowest sum sold by Ripple in almost three years. Huge difference from the all-time high of $251 million in Q2. Despite that, the price of XRP has declined by 22% in the same time period. pic.twitter.com/iP1AUoivq1
— Larry Cermak (@lawmaster) January 23, 2020
While the drop in XRP volume dumped dropped over 60% from the previous quarter, no positive appreciation in price was evident. In fact, the digital asset lost over 22% during the fourth quarter of 2019 to trade at sub-$0.19 USD levels at its lowest during the quarter.
Total Ripple Inc.’s XRP sales top $1.2 billion USD
Since the last quarter of 2016, the top XRP custodian has been selling off the tokens on the market to “get funds for development”. The total amount of XRP sold crossed a billion dollars during the Q2 sale and has since slowed to a cumulative sale of $1.22 billion USD as of Q4 2019.
The latest reported sale of $13 million USD is the first time the digital payments company has not sold any amounts to retail exchanges preferring selling on OTC desks with institutional investors.
Ripple Inc. offset the low volumes of XRP sold with venture capital funding of over $200 million during the quarter which led to questions on what will happen during the first quarter of 2020.
Ripple Inc. to increase XRP volume sales in Q1 2020?
Last quarter represented the first time the company sold lower than $50 million USD in XRP since Q1 2017. However, Ripple Inc. still raised more than $200 million through venture capital funding to offset the low volumes of XRP sold during the quarter. This has left the crypto market rather curious over the volume of XRP that Ripple will sell over this quarter (Q1 2020).
Critics remain skeptical on the future of XRP which may be a direct reflection to the massive dumps in 2019, which caused the price of XRP to plummet below the $0.20 USD resistance levels. This has caused an extensive lack of investor confidence in XRP as seen by the dip in price despite the huge reduction in XRP dumps by Ripple Inc.
A spike in Ripple Inc.’s dumps on XRP market this quarter may kill off the bullish spirit to kick start the journey to $0.30 USD and may see the coin retest sub-$0.20 USD level.
The post Ripple’s Lowest Quarterly Dump In 3 Years Didn’t Help As XRP Dipped 22% In Q4 2019; What Next? appeared first on Coingape.