By Hassan Mehmood (Saudi Arabia)
It is now normal to hear the XRP sales and transactions from the Escrow wallet. Recently, the crypto alert startup Whale Alert reported that 200,000,000 XRP has been transferred from the Escrow wallet of the Ripple to the Ripple Labs. The worth of 200,000,000 XRP estimated to be $38.1 million.
— Whale Alert (@whale_alert) December 31, 2019
The transaction to the address of the Ripple Labs is followed by another big transaction. In the second transaction, there are almost 1,000,000,000 XRP worth 192,008,043 USD are unlocked from the Escrow wallet. It means that the company is going to sell more XRP as usual.
— Whale Alert (@whale_alert) January 1, 2020
The founder of Quantum Economics and senior analyst at eToro Mati Greenspan highlighted the two primary flaws in the Ripple’s Tokenomics.
Also read:According to Greenspan:
Yes. XRP tokenomics is a bit funny that way. The two main issues… Ripple holding a large portion of tokens and selling into the rallies. Usage of the network does not necessarily require XRP tokens. Banks can use Ripplenet w/o ever touching the token.
Crypto Sales in 2019
When checking the data of quarter three of 2019, we come to know that sales are decreased in this period as compared to the 1st and the 2nd quarter of the year. The worth of crypto’s sale in 3rd quarter is $66.24 million that is less than the $250 million, recorded in the second quarter.
The crypto community is putting harsh criticism against the sales of XRP on a large scale. Some are, even commenting that they are making money by selling the coins and are not investing in expanding the ecosystem.
But the staff of Ripple rejects the criticism. The CEO of Ripple Brad Garlinghouse said in August that:
XRP sales are about helping expand the asset’s utility – building RippleNet & supporting other biz building w/XRP ie Dharma & Forte. Reality is we DECREASE our sales by volume Q/Q and since then the inflation rate of XRP circulating supply has been lower than that of BTC and ETH.
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