Ripple, the San Francisco-based start-up that developed the XRP token and its underlying tech, is making changes to its approach to XRP volume reporting and sales.
Ripple’s move is in response to recent reports claiming that the vast majority of crypto trading volumes reported by cryptocurrency exchanges is false. One report in particular, published by Bitwise Asset Management in March, claimed that some 95% of Bitcoin exchange trading volume listed on the popular cryptocurrency tracker Coinmarketcap is fake or noneconomic in nature.
These reports have prompted Ripple to take measures aimed at addressing the existing issues when it comes to crypto volume reporting.
“While we aren’t claiming to have an exact solution, we are taking steps at Ripple to address these concerns and the questions they raise about the overall reliability of market structure and reporting at digital asset exchanges worldwide,” the company wrote in a blog post published June 3.
As part of this effort, Ripple is evaluating its approach to XRP volume reporting, “including reviewing new options and requirements for sourcing market data”. The company is also working with “trusted partners in the space” in an attempt to better understand the scope and the scale of the problem.
Ripple’s programmatic sales of XRP will also be impacted as a result of the company’s new approach. Until now Ripple was selling XRP on the open market programmatically, in a series of small sales designed to amount to 20bps of the total XRP volume each quarter, as reported by Coinmarketcap. However, Ripple’s sales of XRP in Q2 2019 will be substantially lower than previous quarters, likely dropping to less than 10bps of the total volume.
“Longer term, by being more demanding about our expected standards for market structure and reporting, we hope to begin raising the bar industry-wide,” the company said.
In today’s trading, the XRP price stood at $0.414, as of 17:42 BST. The digital coin has lost 6.6% of its value in the past 24 hours, mirroring a larger cryptocurrency downswing.
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