Ripple Q3 Report Shows XRP Sales Doubled To Hit $163M Fuelled By Institutional Sales
Below is a summary of Ripple's 2018 Q3 Markets Report outlining XRP sales, recent developments, and general market trends.
The company behind the third largest cryptocurrency by market capitalization, Ripple, published its latest market report on the third fiscal quarter of 2018 on October 25th.
According to Ripple’s report, the most significant change in Q3, compared to the previous quarter, happened in the sales of their XRP token to support its business development activities.
The large increase was mainly attributed to direct institutional sales which jumped by 480% to reach nearly $100 million.
Their programmatic sales distributed $65.27 million worth of XRP, which is, compared to $56,66 million sold in Q2, a 16% increase.
Ripple’s XRP II subsidiary institutional direct sales department recorded a stunning $98.06 million worth of sales. Considering the fact that the same entity sold $16.87 million during the previous quarter, we come to the increase of striking 481%.
To sum up, a total amount of $163.33 million worth of XRP was sold to various investors during the third fiscal quarter this year, which is more than double than the previous quarter’s $73.3 million.
Ripple has access to 13% of the total circulating XRP, and their sales, however high, represent only a tiny fraction of that amount.
400 million less in escrow
It is a widely known fact that Ripple holds 55 billion XRP tokens locked in a cryptographically-secured escrow account which, according to the company, ensures the certainty of XRP supply.
During the Q3 2018,1 billion XRP was taken out of the escrow each month, which means that a total of 3 billion was used by the company during that timeframe, while 2.6 billion was put into newly formed escrow contracts. The remaining 400 million XRP, Ripple reports, are being used for the XRP ecosystem support.
Although Q3 was another tough quarter for the crypto industry as a whole, witnessing a 12% downturn, XRP outperformed the general market. Ripple emphasizes the positive movement XRP recorded towards the end of the fiscal quarter, which pushed the token in the green.
XRP Markets Report also reflects on the overall stance of the market by acknowledging the investors’ declining trust towards ICOs.
The report also deduces that, caused by “rules that create a clear legal framework for the trading of digital assets,” more than two-thirds of the quarter was dominated by cryptocurrency exchanges based in Malta, but as we were reaching the end of the quarter, South Korean exchanges resurfaced to regain strong positions in the market.
Speaking further about Malta, Ripple stated that the country assists international companies by allowing them to pay as little as 5% in corporate taxes.
Ripple explains that this crypto-friendly environment has lured in a number of leading crypto-related enterprises, such as Binance and OKEX exchanges, which migrated their operations to this Mediterranean island state.
The company added a brief overview of Wall Street – Crypto development as big institutional firms are said to be moving towards supporting various shapes of crypto trading.
However, the report clarifies that no official offerings have been launched by institutionals just yet.
As a positive market initiative, Ripple mentions Goldman Sachs’ alleged plan to offer custody for crypto funds. Furthermore, Bank of New York Mellon, JPMorgan Chase and Northern Trust are also working towards offering their clients crypto-custody service.
Ripple concludes their market report by saying that all efforts have yet to bear fruit in form of institutional investors’ deeper involvement. It’s only a matter of time before institutional players begin to dominate the space.