Ripple unblocked 1 billion XRP from its escrow account again — to sell them on OTC markets. The community once again expressed dissatisfaction with this decision.
In December 2017, Ripple announced that it had blocked 55 billion XRP on escrow account and these tokens will be released at 1 billion XRP per month over the next few years. These monthly sales are aimed at enabling the company to sell XRP to crypto projects and institutional investors, while the excess XRP is transferred to a new escrow account. The Ripple community, in turn, accuses the company of reducing the cryptocurrency exchange rate by 35% in 2019 (for comparison: bitcoin grew by more than 90%).
Ripple CEO Brad GARLINGHOUSE regularly rejects these allegations, saying that the company, which is the largest shareholder, is the most interested party in the success of the token. He also explained that these sales are necessary for the development of the Ripple ecosystem.
According to the company's report for the Q3 of 2019, it plans to take a “more conservative” approach to monthly sales. In the Q3, Ripple sold XRP at $66.24 million, down 73.7% from the previous quarter.
Image courtesy of Ripplecoin News