On November 30, 2019, Whale Alert (the twitter account committed to tracking crypto transactions) spotted an enormous withdrawal from Ripple’s escrow wallet. On the XRP Ledger, this transaction would cost 0.05 XRP, which is equivalent to $0.011 fees.
This news about Ripple liberating 1 billion XRP worth $225,092,032 to be sold in Over-The-Counter markets (OTC) has left many questioning XRP’s performance and denouncing the act.
However, Ripple, in its Q3 2019 market report, assured that the transfers between Ripple treasury and escrow accounts do not warrant Ripple distributing XRP. Brad Garlingouse, Ripple’s CEO, went on record to say that Ripple controlling the digital asset’s price is akin to whale controlling the BTC price. To bring the inflation rate lower than that of Bitcoin and Ether, Ripple has reduced its XRP sales by volume quarter on quarter.
Though one cannot say for sure if the XRP market would be able to pay for more discernible volumes to engage the selling, many are hoping for a fortuitous profit. Ripple intends to share the amount of XRP that was returned to the escrow account.
Owing to the San Francisco-based firm’s authority over more than half of the total 100 billion XRP, Ripple has always bear the brunt of being too centralized. XRP performance continued to be sluggish despite Ripple’s step of locking 55 billion XRP in escrow (in December 2017) to allow tokens at a rate of 1 billion XRP per month. What Ripple had targeted through the monthly sales was, to sell its XRP holdings to different crypto exchanges and institutional investors; and put surplus XRP in the new escrow account. But this strategy led to its inadequate performance in 2019 as well.
Going by its poor performance, the third-largest cryptocurrency is far from recreating its all-time high of $3.84 (achieved in January 2018) as it has gone astray by 39% of its value, already; leaving investors highly worried and disappointed.
Based on XRP’s recent figures at $0.221880, The Crypto Monk analyst has alerted XRP holders not blindly to fall for predictions.