Altcoins

Claims Made by CEO Ripple Confirmed by Ripple’s Own Spokesman

Brad Garlinghouse, CEO of Ripple, was recently seen at the Information’s annual subscriber summit where he unleashed at Facebook’s endeavor, Libra. Apart from that, he also claimed to successfully onboard about 30 financial institutions every quarter.

As per another spokesman of Ripple, claims made by the CEO are not fabricated as the company is making “2-3 deals a week.” This means that every month the company is able to finalize deals with 8-12 institutes and in a quarter, with 24-36 financial institutes.

The CEO also told that the company didn’t need to raise capital as it has over $305 million in cash in the bank. He added that the current valuation of the company was equivalent to cash stored in the bank. Apart from the cash, the company also owns the world’s third-largest cryptocurrency by market cap, XRP.

READ ALSO: With More than 85% Bitcoins Mined, Only 3 Million Bitcoins Are Left to be Mined

The CEO of Ripple might be progressing by bringing several new institutes to blockchain payments, however, the company’s native cryptocurrency XRP is struggling in Q3. A report released by Ripple shows that as compared to the previous quarter, XRP’s sales were down by 73%.

The report explained that while XRP sales in the previous quarter were around $251.51 million, only $66.24 million worth of XRP was sold in Q3. Previously, the company elaborated its plan to slow down sales in Q3 and now, Ripple plans to maintain a similar approach throughout Q4. Furthermore, explaining the Q3 escrow activity, the report reads:

In Q3 2019, three billion XRP were again released out of escrow (one billion each month). 2.30 billion XRP were returned and subsequently put into new escrow contracts. 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. All figures are reported based on transactions executed during the quarter.

Apart from reporting the escrow activity and sales, the report also discussed several allegations made by people. Rejecting the allegation that the company has been dumping XRP to manipulate the price of XRP, the reports continued that the false perception was spread by Twitter bots.

READ ALSO: Libra Further in Trouble as FATF Raises Money Laundering Concerns

The reports also enlightened on the increased activity of bots against the company in Q3. Addressing the FUD (fear, uncertainty and doubt) about dumping allegations, the reports providing clarification stated:

Conversations attempted to support the allegations by pointing to large movements of XRP, which were in fact transfers between Ripple treasury and escrow management accounts. In other words, those transfers did not entail Ripple distributing XRP.

While on another occasion the reports simplified:

Bottom line—Ripple cannot control XRP price. XRP is traded on a fully functioning and independent digital asset market, including over 140 exchanges, in which Ripple plays a very limited role.

XRP ledger which is regarded as a decentralized cryptographic ledger by the company began in 2012 to enable cross-border payments. Let’s see what the future holds for Ripple and its native cryptocurrency, XRP, in Q4.

Tags

Fatir Malik

Electrical engineer by profession, turned into blockchain developer. Fatir contributes regularly with his insights about latest developments in fintech sector. Contact the editor at editor.opinions@blockpublisher.com

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.