Yesterday, Ripple released it second quarter 2018 report on XRP, its digital token. According to the report, Ripple sold XRP worth $75.53 million in the second quarter with programmatic sales heavily outweighing direct sales via Ripple’s subsidiary XRP II, LLC, a registered and licensed money service business (MSB).
The report also stressed the low volatility of XRP in Q2, pointing out that it experienced a 9.0 percent price drop in line with Bitcoin’s 8.2 percent decline. It also highlighted the fact that three billion XRP have been released from escrow contracts in Q2, whilst 2.7 billion XRP was put into new escrow contracts.
Ripple is also at pains to explain that in the last quarter of 2017 it placed 55 billion XRP in an encrypted escrow account, meaning that the company can only access 13 percent of total XRP in circulation.
What is this all about? It is Ripple creating distance between itself and XRP. Why do that? Because of the great debate in the crypto community over whether Ripple/XRP is ‘centralised’ or ‘decentralised’. The purists, who are many, don’t believe XRP is equal to other cryptocurrencies and now Ripple is doing its best to say, “Yes, it is.”
In this report, Ripple emphasises XRP’s independence form the mother company. The document says: “It’s also important to note that despite Ripple having its best quarter ever in Q2 — in terms of customers signed — XRP’s price continued to decline with those of other digital assets, underscoring XRP’s independence from Ripple.”
XRP is the third largest cryptocurrency by market cap and it is trading at 10% less than a week ago. Is this report an attempt to ensure that XRP is sufficiently detached from Ripple and its product so that the crypto community show stronger support for the token? What is your best guess about Ripple’s strategy?