The company Ripple regularly reports on new partnerships, but XRP continues to fall in price. Bitlord trader believes that the reason the dump of the token by the company. He put forward Ripple ultimatum: if within 60 days, the company will not cease to launch on the market of XRP, he’ll make a fork of the network. Ripple says it is not dumping prices, and the sale of XRP is made to expand the scope of cryptocurrencies. We figured out whether Ripple gampat price, and why the fork network, XRP will not solve the problem of investors.
The unhappy investors Ripple
Bitlord anonymous cryptotriton, with more than 100,000 followers on Twitter. He is a great enthusiast (and, apparently, the investor) Ripple, believing that XRP can topple bitcoin and cryptocurrency to become number one.
In early August, Bitlord published on Change.org the petition «Stop Dumping Ripple» with a call to stop drain XRP. The trader wonders why, despite regular news about new partnerships, the price of XRP is not growing. In his opinion, the main reason for this is that the Ripple «resets billions XRP», thereby forcing down the price of the token. If a company refuses to dumping, its cost is gradually, but surely will go up. The logic is simple: the smaller the coins, the higher the price.
🚨 Nearly 1000 signatures!🚨
“Stop dumping ripple $XRP “
If you haven’t joined the cause, do so now ✅
You can help stop the selling and together, we can pump this shitcoin to the stratosphere 🚀🚀🚀https://t.co/sXqPcUDfBd
— CRYPTO BITLORD (@Crypto_Bitlord) August 8, 2019
«Nearly 1,000 signatures on a petition to «Stop the dumping Ripple». If you haven’t subscribed, do it now. You can help to stop the sale, and together we will be able to run this dermalin/shidoin into the stratosphere,» he wrote in his Twitter Bitlord.
For the month the petition was signed by a little more than 3,000 people. However, investors who are dissatisfied with actions Ripple, is clearly much more. Despite the sales growth, by mid-year, XRP has shown minimal growth since the beginning of the year compared to other crypto-currencies of the top 10 by market capitalization — by the fall he is the only one of them lost value. Investors buy an asset and want to see the rise of its value.
Why so many is selling Ripple XRP?
XRP cannot mined. Just released 100 billion tokens: 80% of them were distributed among the founders and operating structures of the company and regularly dumped on the market. In 2017, the Ripple deposited 55 billion XRP on the escrow account and was going to withdraw 1 billion XRP per month, part of which is sold. In practice, however, withdrawal amounts may vary and are unknown in advance. It is believed that XRP is usually produced in accordance with the volume of market activity. XRP trading volume is growing along with the prices for cryptocurrencies in General. Recently, the pace of sales of the tokens has increased.
According to the April study, The Block total by spring 2019 Ripple sold XRP for $890 million, of which 34.4% was sold to the exchanges, 65.6% institutional investors:
- In 2017, the company sold the tokens for $160 million;
- In 2018 — to $534 million;
- In the first quarter of 2019 — $169 million;
- In II quarter — already at $251 million ($100 million of which occurred in direct sales to institutional investors and $114 million through partners)
Sale of tokens for the first two quarters of 2019. Source.
In July, Ripple announced that the sale of XRP will still be proportional to the market conditions, but the company will reduce them to protect the price of the token. Sales growth was driven by higher trading volume for the last three months. To reassure investors concerned about a protracted fall in the value of XRP, the Ripple company noted that the number of partners that use the company’s product xRapid has increased by 30%, and the number of transactions in it — 17%.
Ripple does not report details about what to spend the money. Of course, part of the money goes to top managers of the company. But it is much more finances should be directed to the development of the ecosystem XRP. «The money to the company RippleNet develops and supports other initiatives with the involvement of XRP like Dharma or Forte,» wrote CEO brad Ripple Arlinghaus.
In any event, no selling XRP is not enough. After all, the main customers of the Ripple — financial institutions. The company needs to sell them a token so they can use it for money transfers. In Ripple also say that paying banks and companies «deductions» for the use of their «products» and even paid «marketing incentives.»
Ripple gets a lot of benefits from selling XRP, and very little burning. In the long-term benefits for the project from the sale of XRP can be much larger than simple combustion tokens. For example, the Ripple transaction with MoneyGram has led to the introduction in service of the cash payments xRapid using XRP for cross-border payments. It seems to be much more valuable to the ecosystem XRP than just a smaller number of tokens and a slight increase in their value. In addition, because of sales token it becomes more difficult to manipulate — the more it sells, the more it is divided among different holders and so becomes more secure.
The threat to fork Ripple to scare
The petition Bitlord not received proper response, and he decided to go into action. In late August, the trader has offered to hold a fork network, XRP and take the control token from Ripple.
I’m thinking about forking $XRP so we don’t have to deal with the founders dumping.
-This will be a community effort.
Retweet if you’re in 🚀🚀🚀
— CRYPTO BITLORD (@Crypto_Bitlord) August 26, 2019
«I’m thinking of creating a fork of XRP, after which we will no longer have to deal with the dumping of the founders. It will be community work. Do retweet if you’re in business,» wrote Bitlord in Twitter.
In response, the CEO of Ripple brad Garlinghouse in his Twitter said that the sale of XRP is made to increase the scope of the token, the criticism of biased company actually already reduced the volume of sales of XRP (and the inflation of the token is lower than BTC and ETH). However Bitlord not persuaded by the arguments Garlinghouse, and he gave me an ultimatum: within 60 days Ripple have to stop to dump XRP, otherwise he and supporters will hold a fork the token and gain control of it.
Ripple are finally starting to take us serious!
The power of the petition is making waves 💪 @bgarlinghouse @JoelKatz you now have 60 days to stop dumping $XRP or we will stage a community takeover.
If it’s a decentralized network like you say, we have the power to do it get creative with baby airlines https://t.co/nKzqRGHZoh
— CRYPTO BITLORD (@Crypto_Bitlord) August 28, 2019
«Ripple is finally beginning to take us seriously! The effect of the petition is distributed by waves. I turn to brad Garlinghouse and David Schwartz [tender Ripple]: you have 60 days to stop dumping XRP, otherwise we’re taking the community. If this is indeed a decentralized network, as you say, we have the opportunity to do it,» issued an ultimatum Bitlord.
The community embraced the idea of a fork XRP ambiguous. Under the tweet comments were met with approval, but most users did not support the initiative Bitlord. Radical investors even proceeded to threats.
Sadly taking some time off twitter…
Received numerous death threats over the $XRP fork and I’m continuing to get personal attacks over my past.
To those having a good time, thanks for the support and I’ll see you soon 🙏
— CRYPTO BITLORD (@Crypto_Bitlord) August 28, 2019
«Unfortunately, some time could not go on Twitter… my suggestions on fork XRP I received a lot of threats of murder and faced with trying my deanonimizatsii. I hope you are all well, thank you for your support and see you soon,» wrote Bitlord.
Part of the community created a new petition that requires Ripple to increase the «reset XRP», «strategic over-the-counter sales and infrastructure investment» to as many institutions took the token. While she signed a little less than 300 people.
Sorry dude, but you are really full of 💩
How do you think your forked (not possible) coin will be used in a non existing ecosystem? You are ridiculous…
— XRP Deutschland 🎋 (@DeutschlandXrp) August 26, 2019
«Sorry dude, but you’re really full 💩. Do you think your forked (impossible) coin will be used in a non-existent ecosystem? You’re just funny,» here is a vivid example distributes criticism.
The ultimatum and threat, the fork didn’t scare Ripple. On 1 August the company introduced 1.8 billion XRP ($565 million at then exchange rate) from the escrow account (most of which is translated by third-party wallets), and September 3, another 1 billion XRP. Thus, the company did not keep their own promises to reduce sales of tokens.
Is it possible to hold the fork of XRP?
It is believed that a fork of XRP impossible. All tokens already exist, and XRP is not on the blockchain. To create a new XRP, it is necessary to modify the source code. So the only way to hold a fork token — to make a «fork» of the source code with the consent of the community. Automatically the new coin will not be recognized by the network the XRP — users and markets, too, will need to update the code. This is an unlikely scenario, as it will have to find someone who will be able to manage the new network nodes to create a group of validators, and then to motivate them any reward — what difficult, as XRP is not Melnitsa. Even if all of that happens, the liquidity of the new coins would still be a very big issue — who may need it?
In the comments for publication AMBcrypto Bitlord said he was not going to fork the blockchain, XRP, and wants to start from scratch by deleting the «dodgy founders premine shitty and banking integration.» According to the trader, he has the support of influential people-for example, Kanye West, and he hopes to reach the Donald trump. «I tend to have the most equitable method of distribution that has ever seen before. We will make Satoshi proud and perhaps forever change the cryptography,» said Bitlord.
«The fork of the coin — a strong statement that has no convincing arguments. So far, it looks hype clean water. For example, over XRP will hold a fork, but what guarantees that a coin be used? Will the network work? What the fork will be different from the original? Even if it is created, instead the solution will be a new coin with the same problems and without existing strengths XRP. But the fact that we are discussing this situation, shows an early distrust of investors to the project,» said Eugene Shulakov analyst BDCenter Digital.
It is not yet clear exactly how Bitlord may try to «seize power» over XRP and how it should affect its price. The company controls more than half of the total supply of tokens and can interfere with the operation of the network. Hardly the centralized structure of the project allowed to create a fork Aldona. And indeed, this idea seems a little crazy. If the proponents Bitlord decide to fork and create a new blockchain, the market will be just another token. It does not solve the problem with the value of XRP. On the contrary, can only have a negative impact on price.