In a new Ripple Insights report published on June 3, Ripple addresses concerns of the exaggerated numbers and overall inaccuracy of XRP volume reporting on digital asset exchanges worldwide.
In light of this, Ripple claims to be working on a solution to address these concerns and improve the overall reliability of XRP volume reporting.
As stated in Ripple’s report:
We are actively working with trusted partners in the space to better understand the scope and scale of the problem.
We are evaluating our approach to XRP volume reporting, including reviewing new options and requirements for sourcing market data.
We are taking a more conservative approach to XRP sales this quarter.
By taking an active approach to evaluating and improving XRP market data, it shows that Ripple cares about the value of XRP and does not want to negatively impact the price by selling too much in their programmatic sales of XRP volume.
As stated by Ripple, going into Q3 2019, Ripple’s sales of XRP will be substantially lower (as a percentage of reported volume) than the previous quarter. They stated that the target of 20bps for programmatic sales of XRP volume will drop to less than 10 bps.
For the uninitiated, Basis Point (BPS) as explained by Investopedia refers to:
“A common unit of measure for interest rates and other percentages in finance. One basis point is equal to 1/100th of 1%, or 0.01%, or 0.0001, and is used to denote the percentage change in a financial instrument.”
Therefore, it appears that Ripple has come to the conclusion that they were possibly selling too many XRP with respect to the daily volume, and now intend to establish better volume metrics.
Going forward with the adjusted bps for programmatic sales of XRP volume, investors can expect to see the price of XRP increase as prices will no longer be as suppressed from selling.
Do you think the price of XRP will rise significantly in the third quarter of 2019? Let us know your thoughts in the comment section below.
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