Ripple recently released about 1 billion XRP from its escrow account. Although this hasn’t been occurring as frequently as before, it still raises questions concerning the cryptocurrency company and its famed RippleNet.
Most capitalists consider the concept of a free market to be one driven by the forces of demand and supply. The idea of “programmatic sales” seems to defeat this concept.
On the flip side of Ripple, programmatic sales have nothing to do with demand and supply. They rather have to do with the maintenance of the Ripple Protocol Consensus Algorithm (RPCA). This is the argument of many HODLers who have held the XRP token in hopes of an exponential rise.
A cursory look at XRP’s figures in the market says a lot. XRP is the third-largest cryptocurrency asset by market capitalization. It trails its leader, more improtantly Ethereum. It has followed no specific price-action model before and after the crypto-winter.
This is the reason many within and outside the crypto space are concerned about its future. The issue of programmatic sales without a transparent mechanism of doing so also raises eyebrows. This information is only released in filings to regulatory authorities.
This often occurs months after the net effect has occurred. A real-time transparent mechanism will do much to allay the fears of many.
The donations and remittances of the token also bring much into question. Ripple Labs in the past year has donated millions of dollars worth of XRP tokens to organizations globally. The reasons for this remain unclear even after filing. It is also indicative of moves that are inconsistent with proper corporate governance.
For the crypto space to become a part of everyday life, the norms, values, and guidelines must be noted and adhered to.
While the crypto space is still very much made up of those who many consider being nerds, libertarians and alternative-lifestyle seekers, the road to adoption is paved with a whole lot of rules. Corporate governance is one of those rules.
The world won’t beat a path to the doors of the crypto space if procedures that are considered to be improper are continuously practiced by its members.
Even if there isn’t a hint of impropriety (which is what I believe), an explanation of why this is done must be given by members of the crypto space before the adoption could become a reality.
It is a simple case of explaining to the rest of the kids on the global playground how the new toys work. Without an explanation, how would they have fun using them?
The benefits of using XRP and other cryptocurrencies can be better explained only if we simplify the language of usage and the processes themselves. After all, this is what made Bill Gates his billions.
Computers at the time were a thing, Everybody knew of their potential to change everything. Few knew how to put everything together in an ecosystem that made sense to everybody without asking too many questions.
Fast forward to 2020 and we are yet at the cusp of history yet again. If anyone has the guts to do this again then maybe many won’t be worried about terms such as “programmatic sales”. Then again as I always say, Life is simple! And so is getting adoption of cryptocurrencies. We crypto people just don’t see it yet. In time, we shall though.
So Ripple may not be manipulating the markets, but they aren’t making simple explanations either!
