Ripple said that in Q3 2019, there was a major rise in FUD surrounding allegations of XRP dumping and price manipulations by the company itself.
Last Friday, October 18, blockchain startup Ripple has released the Q3 performance number for XRP cryptocurrency. Despite being the third-largest cryptocurrency by market cap, XRP’s performance has failed to impress investors. Q3 was no different as the XRP price slipped to its 2019-low below $0.25 by September end.
As we know that since the launch of XRP in 2012 Ripple has been given some portion of the 100 billion XRP tokens created. Each year, the company engages for some token sale in the open. However, Ripple has been majorly criticized by XRP investors for its XRP dumping practice. Investors believe that Ripple’s XRP dumping practice has harmed the price of the token.
In August 2019, a petition was filed asking Ripple to stop its XRP dumping in the open market. Addressing this issue, Ripple said that the XRP sale dropped by nearly 74% on QoQ basis. In the official blog post, Ripple wrote:
“In the third quarter, we significantly reduced our XRP sales, consistent with the messaging we shared in the Q2 report. For Q3 19, our total XRP sales were $66.24 million vs. $251.51 million in the previous quarter”.
XRP Price and Market Cap Drops in Q3 2019
XRP continued its dismal performance in the Q3 as its price dropped 35.4% during Q3 2019 while the overall market cap of crypto assets dropped by 30.4% during the same period. In the last quarter, the XRP volume also dropped by 53.1% from $31.9 billion to now at $18.2 billion.
Moreover, 3 billion XRP tokens were released out of cryptographic escrow, 2.30 billion XRP tokens were returned to escrow. “The majority of the unused portion of the 700 million XRP not returned to escrow was being held in operating wallets at the end of the quarter,” said Ripple.
To boost the XRP usage, Ripple’s investment wing Xpring launched a new platform to help developers and entrepreneurs build the XRP Ledger using the XRP tokens. This is an open-sourced developer platform and can accommodate 23 million developers from around the globe.
While speaking of the XRP dumping charges, Ripple calls it a major uptick in the FUD. “Last quarter, there was an uptick in FUD (fear, uncertainty and doubt) and the spread of misinformation about XRP, especially around topics such as purported XRP dumping and price manipulation by Ripple,” said the company.
The company said that the FUD driven by bots saw a 179% increase QoQ.