Kataryna Kovtun May 1, 2020
XRP sales were down 87% in the first quarter of 2020. This is the worst indicator for Ripple ever.
Ripple has published a financial report for the first quarter of this year. During this period, the company sold XRP for $ 1.75 million. In the last quarter of 2019, this figure reached $ 13.08 million. The drop in sales was a record of 87%.
Strong recession due to a sharp drop in direct institutional sales. As well as a protracted pause in sales to cryptocurrency exchanges.
According to the report, Ripple focused exclusively on XRP over-the-counter sales. The emphasis is on strategically important regions such as Europe, Asia, the Middle East, and Africa.
The decline in sales began in the third quarter of 2019 when the company temporarily stopped selling XRP exchanges. At that time, the collapse reached 80%.
Exchanges accounted for most of XRP sales, but the company decided to abandon this practice. The reason for this was reports of overstatement of trade volumes.
The total amount of XRP
At the same time, the total amount of XRP grew in the first quarter to $ 29.68 billion. This indicator increased by 72% compared to the previous quarter. Also, Ripple noted that the number of transactions in RippleNet has tripled, and their dollar value has increased by 294%.
The XRP hit a historic high of $ 3.84 in January 2018. Since then, the coin has fallen in price by more than 95%. The asset is currently trading at $ 0.22 on the BitXmi cryptocurrency exchange. The coin ranks third in the list of cryptocurrencies in terms of capitalization, giving way to Bitcoin and Ethereum.
Fall in Popularity
Ripple has sued YouTube earlier for damaging its reputation. The company requires the video hosting of the asset to be identified by fraudulent schemes, removed after detection, and not profit from such participants. The XRP issuer also plans to recover a certain amount from the service as compensation for damage to Brad Garlinghouse’s reputation.
Over the past two years, the number of Ripple followers on Twitter has fallen by 82%. The decline in popularity of the project is associated with a drop in the rate of its token. It may also depend on the company selling its XRP coins, which is necessary to maintain its financing.
Earlier, Ripple CEO Brad Garlinghouse admitted that his company would not have been profitable without the sale of XRP.
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