Ripple has found itself in the eye of the storm at different points this year for selling a large amount of XRP at regular intervals. The San Francisco-based company is the biggest holder of XRP, the third-largest cryptocurrency in the world by market cap, and hence its actions have a bearing on the price of the token.
How Will the Market React?
In a new development, it has emerged that the fintech company has released another 1 billion XRP tokens, which are worth $225 million. Despite enjoying such a large market cap, XRP has performed poorly this year and is down by as much as 30% in 2019 so far.
Even during the crypto rally in the first half of the year, XRP failed to perform any better, and the actions from Ripple have often been blamed by market participants. That being said, it should be noted that the latest release is part of the scheduled release of XRP tokens from the escrow account by Ripple. The tokens might have been sold in markets outside of exchanges. However, some analysts now believe that the token might not ever actually deliver on the sort of expectations many investors might have had.
There is a huge supply of the XRP token, and beyond a bit of speculative investment, as well as beta testing by financial institutions, there is not much else that is happening. Moreover, the token has been struggling ever since it hit its lifetime high of as much as $3.40 per token back in 2017, and there is little hope that it is going to reach those levels again. While the end of 2019 approaches, the token is now down to $0.21 each, and trading volumes have nosedived as well.
At this point in time, an investment in XRP is looked upon as a speculative investment, and that should be a cause for worry for Ripple.
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