The impressive 200 percent performance from bitcoin over the course of this year have probably got several investors presuming that all big cryptocurrencies are performing well. But unfortunately, this isn’t exactly the case…
For Ripple’s XRP token, the cryptocurrency has lost 20 percent over the past 12 months.
This kind of performance isn’t one that wouldn’t be expected by such a big digital asset, but enthusiasts of XRP have been accusing ripple of depressing the price of the token on purpose. In an article posted by Bloomberg earlier this year indicated that XRP’s collapse has a lot to do with Ripple cashing out their own tokens.
To rumour goes that ripple has been taking part in the tens of millions worth of sales to cover expenses and build up its balance sheet. The co-founder of Multicoin, Kyle Samani stated:
“The company has been steadily increasing their sales of XRP over the previous three quarters, likely inflicting downward price pressure… Savvy investors have known this for some time; however, for whatever reason the market is just now picking up the narrative and reacting.”
Earlier this week, the CEO of Ripple, Brad Garlinghouse looked to address such a rumour in an interview on CNN’s First Move – the week-long series with prominent figures in crypto and blockchain.
The anchor for the CNN segment, Julia Chatterleyasked the CEO about the recent news that the XRP community has been threatening a ‘takeover’ if execs in the firm keep dumping XRP.
“In the XRP community, Ripple is the largest owner, and we are the most interested party in the success of the XRP ecosystem,” Garlinghouse said.
Dumping XRP onto the markets wouldn’t be the best thing to do according to Garlinghouse. “We are clearly interested in a healthy, successful XRP ecosystem, and we would never do that,” he stated.
It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!