It’s no secret that XRP – the cryptocurrency that is closely associate to Ripple – has faced its fair share of hate over the past couple of years, but it now appears that some of the cryptocurrency’s largest fans are feeling disillusioned with it.
The current climate surrounding XRP has largely been damaged by recent news that Ripple – who holds a significant amount of the crypto – has been selling a significant amount of XRP each quarter due to using inflated volume figures to guide their selling.
Now, embattled investors have launched a petition to stop Ripple from “dumping” XRP on the markets, but it is unlikely that this will have any impact on how the company goes about selling their XRP holdings to fund their operations.
Has Ripple Been the Source Behind XRP’s Recent Bearishness?
XRP has faced a significant amount of downwards pressure as of late and is currently trading just a hair above its 2018 lows.
Unlike many major cryptocurrencies, XRP has not been able to incur any upwards momentum throughout the first half of 2019, and just fell to yearly lows of roughly $0.25 earlier this month.
Kyle Samani, the co-founder of the Multicoin Capital hedge fund, recently spoke to Bloomberg about XRP’s lackluster price action, noting that Ripple’s steadily increasing quarterly XRP sales have likely been the source behind its recent bearishness.
“The company has been steadily increasing their sales of XRP over the previous three quarters, likely inflicting downward price pressure on XRP. Savvy investors have known this for some time; however, for whatever reason the market is just now picking up the narrative and reacting,” Samani, who is currently shorting XRP, explained.
XRP’s recent price action has led nearly 2,200 people to sign a change.org petition demanding that the fintech company quit “dumping” their holdings onto the market.
The petition, which was started by Crypto Bitlord, cites Ripple’s quarterly token sales as the source behind XRP’s recent crash, saying that “Ripple continues dumping billions of XRP on us, crashing the price!”
Despite his anger, the petition organizer does note that he, and many others, still believe the crypto has great potential due to the numerous partnerships that Ripple has orchestrated with major banks and companies.
As more investors continue to stew in their anger regarding Ripple’s recent token sales and XRP’s recent bearish price action, it is possible that more investors will begin jumping ship, leading to a perpetuation of the crypto’s recent downtrend.