Ripple Unlocks Another 1B XRP, Promises No Dumping
The Ripple treasury unlocked another 1B XRP, but the company promised to keep easy on selling.
Based on predetermined rules, the Ripple treasury unlocked one billion XRP coins at the beginning of September. This time, the tranche may not hit exchanges, as Ripple promised to keep it easy on liquidations.
After the initial transaction, several tranches of 40 million XRP going to unidentified addresses.
Ripple locked up 55 billion coins in its Treasury, with the right to unlock one billion each month. The XRP markets have shown indications of selling pressures, but Ripple has used some of the coins as direct incentives to partners. XRP is under selling pressure from one of the early co-founders, Jed McCaleb, who has an agreement to limit his selling to avoid depressing the XRP price.
XRP has shed a few cents, losing 5% last week to $0.25, after hovering for months at around $0.30. The asset so far fails to stage a rally to a higher price range.
The XRP asset was met with increasing skepticism, and co-founder Brad Garlinghouse recently moved in to defend the project from negative messages:
XRP is one of the worst performers in 2019, lagging far behind the growth of BTC and even some of the altcoins that managed to recover lost ground. XRP, however, has continued to slide both in dollar and Bitcoin (BTC) terms. The asset is moving down, losing around 23% this week:
Despite the weak performance to date, there are still extreme predictions of a breakout in the fall:
The varying predictions for XRP are happening as the altcoins are losing even more whenever BTC weakens.
Now, the hurdles before XRP is to establish for sure its status as a digital asset that is not an unregistered security. The renewed claims that Ripple in fact sold a security came from investors, which claimed that the XRP crowdsale was, in fact, a security sale.