Ripple has reduced its XRP sales by over 73% during the third quarter of this year. The XRP sales were $66.24 million compared to $251.51 million during the second quarter of 2019.
This shows that the company decided to take a more conservative approach with its XRP sales considering there were several users complaining about this situation.
Ripple XRP Sales Heavily Fall
According to the recently released Q3 2019 XRP Markets Report, XRP unveiled they are selling fewer XRP coins to the market.
Indeed, during the second quarter of the current year, the company sold $251.51 million worth of XRP coins.
The company informs that they decided to pause programmatic sales altogether and focus on over-the-counter (OTC) sales. These sales are related to strategic partners that are building XRP utility and liquidity in regions that are strategically important to Ripple’s global business.
In addition to it, Ripple’s XRP distribution resulted in lower inflation rates compared to Bitcoin or Ethereum.
About it, Ripple wrote:
“As a result of this discipline, Ripple’s XRP distribution rate since the beginning of the quarter has been lower compared to the inflation rates of ETH and LTC, and similar to BTC.”
XRP is the third-largest cryptocurrency in the market after Bitcoin (BTC) and Ethereum (ETH). At the time of writing, it has a price of $0.296 and a valuation of $12.81 billion.
It is worth mentioning that no new XRP is created. This inflation rate is based on the distribution of XRP rather than the inherent inflation rate of the cryptocurrency. Indeed, XRP has a negative inflation rate.
Ripple is the owner of over 50% of the total XRP supply.
The company sells part of the funds to the market in order to cover its quarterly expenses. That includes salaries and the work they perform to expand XRP adoption around the world.
At the same time, the funds can also be used to acquire different companies and invest in other projects that could eventually benefit Ripple and XRP in the future.
Ripple has already established a network of over 200 financial companies from all over the world. These firms leverage Ripple solutions in order to process faster and cheaper transfers.
UseTheBitcoin reported a few weeks ago that the cryptocurrency exchange CoinField introduced a new platform based on the XRPLedger that would allow bridging the gap between traditional finance and cryptocurrencies.