- The respected analyst Mati Greenspan blames Ripple for the poor performance of XRP in 2019.
- Chris Larsen presumably moved 60 million XRP. The reasons for the transfer are still unknown.
Mati Greenspan, a former analyst at eToro and founder of Quantum Economics, has explained why Ripple’s XRP was one of the biggest losers in the crypto market in 2019. As CNF reported, despite a large amount of positive news, including the adaptation of XRP, the XRP price recorded a loss of 44 percent since the beginning of the year (from $0.352 to $0.194).
Greenspan has identified what he believes are the reasons for this strong downtrend. He was asked by a follower on Twitter whether a progressive acceptance of XRP will have a positive effect on the price. Greenspan said that Ripple’s routine sales have prevented a price increase of XRP. He also referred to the fact that the majority of Ripple’s 300+ customers currently use RippleNet software, which does not rely on XRP.
Yes. XRP tokenomics is a bit funny that way. The two main issues…
1. Ripple holding a large portion of tokens and selling into the rallies.
2. Usage of the network does not necessarily require XRP tokens. Banks can use Ripplenet w/o ever touching the token.
It is also noteworthy that the correlation between Bitcoin and XRP has further decreased. While a slight correlation was observed in previous years, it was barely visible in 2019. While the price of Bitcoin has risen by around 48% since January 1, XRP has lost 44%, as already mentioned.
Greenspan’s accusations are not new
The accusations or reasons Greenspan gives for the poor performance of XRP are by no means new. Throughout the last year there has been increasing criticism in the XRP community about Ripple’s sales. The criticism is based on the assumption that Ripple’s sales put a selling pressure on XRP. Each month, Ripple releases exactly 1 billion XRP from escrow for sale.
The amount that Ripple does not sell is transferred back 30 days later. Although the sale is made over the counter. However, Greenspan and other experts argue that the sales have a strong influence on the price because they are made independently of the current market situation. In the XRP community, the process is therefore also known as “XRP dumping”.
However, Ripple denies the allegations and contradicted the allegations of price manipulation in the last quarterly report and emphasized that Ripple cannot control the price of XRP. Nevertheless, the company has slowed down its sales in recent months. In the XRP Markets Report for the third quarter, Ripple describes that it has completely stopped selling XRP to crypto exchanges.
In addition, Ripple has seen increased transaction volumes for XRP via its On Demand Liquidity (ODL) payment solution in recent weeks. CNF reported that the payment corridor to the Mexican crypto exchange Bitso, in the US dollar to Mexican peso payment corridor, recently set records. As a result, Greenspan also believes that ODL will have a positive long-term impact on XRP.
Whale watchers spot 60 million XRP transaction
In another recent development, Whale Alert have spotted the movement of 60 million XRP worth nearly $315 million. The address belongs to former Ripple co-founder and former CEO Chris Larsen. About five minutes later Larsen sent 56,994,820 XRP from Funding Wallet 1 to a separate, unknown wallet.
Although one can only speculate about the reasons for the transfer, there is a rumor in the XRP community that Larsen might be selling the XRP. Already at the beginning of October 2019 a transaction from Funding Wallet 1 to Coinbase was observed.