The associate cryptocurrency of Ripple is facing continuous loss for a couple of years. After the disappointing performance, XRP is now losing its trust among the most favorable of its investors.
Ripple which holds the maximum stake of XRP is selling it off, signing its weakness to the market.
On to this gesture, crypto experts have backed up a petition to stop Ripple from dumping, because that can have a bad impact on the trading market and cryptocurrency prices.
In response to the petition, the company explains that stocks are getting sold only to those who have the potential to strengthen XRP’s economic growth and to fund XRP’s operations. Though it does not satisfy the investors, as the XRP’ fork continuous to fail, which was the utmost hope of investors.
Investors Blame Ripple for XRP’s downfall
As Ripple owns 60% of the total share of XRP, the likely sale of stake has certainly shown a bearish movement. Since last year, XRP has dropped 20% of its value. And firstly, the reason for it has been a high amount of XRP stuck in escrow amounting to 57 billion which means only 43 billion are available for market circulation.
However, this escrow will be expiring by 2021 as on the 1st of every month, with one billion released from escrow. Though these monthly realizations of XRP have not shown any upward movement.
Secondly, many experts and crypto personalities believe that sudden excess sale of XRP has to lead to such low prices. And now, at the beginning of this month, XRP has reached its yearly lows of $0.25. Something that significantly affects current and future investors.
The Drowning movement of XRP bought the Petition
The petition led by Bitlord, asking for the stoppage on dumping XRP coins via Ripple has got attention from a lot of investors around and within 4 weeks has got signatures from 3,500 people, including some from people using investment platforms to trade on the price.
Bitlord even says that dumping would create great pressure on the market as it is been done in billions, making the currency even weaker. The petitioner even believes that XRP can sustain the fall if Ripple makes wiser usage of its partner banks and other funding organizations.
Though as of now the state of Ripple’s XRP is not firm, hence possibly many of the investors might not be willing to invest their further share into XRP.