Ripple’s XRP Encounters Unexpected Losses in 2019 And Founders Are To Be Blamed.

Ripple’s XRP Encounters Unexpected Losses in 2019 And Founders Are To Be Blamed.

The Ripple's XRP has fallen below expectations this year as it has failed to make any headway despite ranking in the top 10.

XRP is the third-largest cryptocurrency after Bitcoin and Ethereum have had a rocky 2019 thus far, tumbling more than 20% this year. Despite wiping off some $3B on its market capitalization this year, Ripple’s cryptocurrency has retained its 3rd position amidst a skeptical market.
Undoubtedly, the founders should be blamed for this unimpressive performance of the currency.
Its founders and payment service providers hold around 75% of XRP tokens. Moreover, Co-founder Jed McCaleb, who no longer works at Ripple, has been dumping 500,000 XRP on the market daily.
However, no one is certain how much XRP is being dumped. This is in stark contrast to Bitcoin, which has a clear emission rate which is public and unchangeable.

Ripple’s dumping on the market has also accelerated this year, by all accounts. “Last quarter’s $251.5 million was up almost 50% from the $169.4 million sold in Q1,” Eric Turner of Messari told Bloomberg.

Notably, the increasing level of XRP selling during the past three quarters has injected heavy pressure on the price, pushing it downward. Although this has been happening for some time, investors are, for some reason, only starting to take notice now. Ripple, however, justifies the dumping to fund ‘development purposes,’ but where the money is going is murky at best.

Ripple, in a statement to Bloomberg, said that “as a percentage of volume and the actual supply inflation rate were lower” for XRP than for Bitcoin or Ether. The company also claims that its sales are tied to exchange volumes and that they plan on lowering it in the coming quarter.
One strong issue against Ripple is that the firm has failed to be transparent with regards to its supply side.