Is Ripple Labs Influencing XRP Price Direction? Independent Researcher Shares Results
For some time, the crypto community has questioned the relationship between Ripple Labs and its native tokens (XRP). Older documents have shown evidence that XRP was formerly called Ripple, but the company has stressed that its crypto token is called XRP.
Ongoing Controversies
Part of the reason why Ripple Labs has been at the center of controversy in the crypto space is due to its massive XRP in escrow reserves. As far back as December 2017, the company created 55 accounts, holding 1 billion XRP each.
As of January 2023, data shows that Ripple currently owns 43.3 billion of all the 100 billion pre-minted XRP. Furthermore, when Ripple created the accounts, it emphasized transparency in publishing reports every quarter.
However, a lone researcher with the Twitter alias Mr. Huber has dug up some findings to shed more light on how Ripple may have impacted the price of XRP on the market. Commenting on Ripple’s recent update on the price of XRP, the researcher pointed out that the firm bought the dip on New Year’s Eve at an unusually high volume and currently sells the assets at a higher volume.
The researcher cited data from the company’s official API by stating that one need not wait for Ripple’s quarterly report because it is available on the weekly data from the official API. Interestingly, Ripple is selling four times more XRP than on the previous occasions over the past two years.
The researcher first published the latest incident on his Twitter handle at the end of October 2022. Then, he posted that this is a surprise to him because the community has yet to look at Ripple’s XRP holdings that do not reflect on the escrow accounts.
Back in October, an XRP community member asked the researcher whether he thought that Ripple inflated XRP in its buybacks. In response, Huber stated that the firm was transparent about the number of tokens it holds, but the issue is how Ripple calculates it.
What The Quarterly Report Shows
However, the researcher stressed that Ripple buybacks were related to its purchases of the tokens in the secondary market. After buying half a billion XRP in September, Ripple’s purchases may have caused an increase in the token’s price and reduced its circulating supply, he added.
Meanwhile, the quarterly report from its Q3 2022 report shows that the company is a buyer of XRP in the secondary market and will continue accumulating more assets. Furthermore, in the same period, the company’s total XRP sales and net purchases were $310.68 million, a drop from $408.90 million compared to the previous quarter.
Ripple stated that it would continue to sell off XRP only in agreement with the On-Demand Liquidity (ODL) transactions. Meanwhile, the company disclosed that it had yet to conduct any public sale of the asset since the last quarter of 2014.
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