On July 24, Ripple Labs Inc., the company behind XRP, released its Q2 2019 report, which revealed that it had sold over $250 million in XRP in the quarter. The report outlines Ripple’s strategy of selling XRP going forward as well as focusing on establishing legit trading volume data.
Ripple Reports 48% Quarter-to-Quarter Increase in XRP Sales
In the first quarter of this year, Ripple sold $169.42 million worth of XRP, which means there was a 48% quarter-to-quarter sales increase for the second quarter. Going forward, the company intends to sell less of its XRP hoard despite drawing criticism regarding its large stash that it rarely sells. The company has noted that in the second quarter, it limited XRP sales because of inflated trading volumes and as a result Ripple Labs restricted institutional sales and also stopped programmatic sales.
In the second quarter, there was growth in direct institutional sales, which increased by around 73% from $61.9 million to around $107.9 million. Majority of the sales volumes was from programmatic sales, which increased from $107 million in Q1 to around $144.6 million in Q2.
Ripple Funding XRP Developments through Partnerships
The released report also focused on Ripple’s XRP escrow activity in the second quarter. The company indicates that the escrow system is aimed at offering steady XRP supply, and in the quarter the company withdrew one billion XRP per month from escrow. Out of the three billion withdrawn, the company reportedly reinvested 2.1 billion into escrow contracts while the rest was used in funding XRP developments through incubator, Xpring, as well as RipleNet collaborations.
There was a 28% drop in Ripple’s trading volumes from $595 million to around $429.5 million, but this was a result of improved accounting and not a failure of the company’s business strategy. The company indicated that it shifted its benchmark for trading volumes, stating that it used CryptoCompare indices and data so that they can dispel the notion of inflated trading volumes.
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