Ripple reported Wednesday that sales of its cryptocurrency XRP totaled $167.7 million in the first three months of 2018, an increase of 83% compared to the previous quarter and of 2,400% compared to the first quarter of 2017.
According to a post on the firm’s site, direct sales of XRP totaled $16.6 miljoen – a decline of 17% compared to the previous quarter. Programmatic sales of the cryptocurrency more than doubled, aan de andere kant, rising from $71.5 miljoen $151.1 miljoen.
Tom Channick, Ripple’s head of corporate communications, told CoinDesk that XRP sales “exceeded our expectations.”
Hij voegde toe:
“Als een bedrijf, our strategy remains focused on signing up customers to use our technology and moving those customers into production. If we continue to do that, we will fix how money moves around the world.”
The total volume of XRP traded globally also increased markedly in Q1: volumes grew 68% to reach $160 billion for the period.
XRP’s clout relative to the total cryptocurrency market grew in Q1, with its share of overall market volume growing from 5.3% at the end of 2017 naar 6.9% aan het eind van maart.
As for its share of total cryptocurrency market value, the report notes:
“While the total market capitalization of all digital assets was the same on both November 24, 2017 en maart 31, 2018, XRP’s share of that market capitalization doubled, rising from 3.56% naar 7.57% – a continuation of a trend that first began in 2017.”
XRP’s price took off in late 2017, rising from less than $0.25 aan het begin van december tot en met een piek van $3.84 in early January. The token’s subsequent fall was just as steep, and within a month, it was trading at just under a dollar. Op het moment van schrijven, 1 XRP is worth around $0.81.
Ripple’s first-quarter report also addressed the negative influence that a global regulatory crackdown, combined with uncertainty about the future, has had on cryptocurrency prices. It did not specifically reference Ripple’s own regulatory questions, echter, including whether XRP is a security.
Ripple markets XRP and other solutions to banks as a means to increase efficiency and reduce cost in payments, particularly those transacted across borders. The cryptocurrency has attracted a devoted following, but also a fair amount of criticism too, including questions about its degree of centralization and the pace of adoption.
Ripple has issued quarterly XRP reports since Q4 2016, when it sold $4.6 million XRP directly to institutions.
David Schwartz, the startup’s chief cryptographer, explained programmatic sales on Reddit in November, gezegde:
“This is done by third parties that Ripple employs to use agreed algorithms to execute sales, usually by market making that is biased in favor of a net sale. Ripple does not have direct control over these sales and cannot adjust their timing on a short-term basis.”
Direct sales, by contrast, are conducted by XRP II, LLC, een geregistreerde en gelicentieerd geld zakelijke dienstverlening. The main buyers, the company has stated in the past, are financial institutions.
Ripple geplaatst 55 billion XRP in escrow accounts in December “to create certainty of XRP supply at any given time.” The company released around 300 million of these XRP in Q1, which it says “are being used in a variety of ways to help invest in the XRP ecosystem.”
XRP image via Shutterstock.
De leider in blockchain nieuws, CoinDesk is een media-stopcontact dat streeft naar de hoogste journalistieke normen en houdt zich aan een strikte set van redactionele richtlijnen. CoinDesk is een zelfstandig opererende dochteronderneming van Digital Currency Group, dat belegt in cryptocurrencies en blockchain starters.
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