- Ripple has sold more than 5 billion XRP to investors from the escrow account since late 2017 to date.
- At the end of last year, sales figures fell sharply, with programmatic sales of XRP being completely discontinued.
Ripple has contractually committed to transfer 55 billion XRP to an escrow account and freeze this funds. At the beginning of each new month, Ripple releases one billion XRP for sale to investors. Any unsold XRP will then be returned to the escrow account.
A new report shows that Ripple has released 27 billion XRP for sale since 2017 to date, with 21.6 billion XRP returned to the escrow account. Thus, Ripple has sold nearly 5.4 billion XRP to investors to date, leaving 49.6 billion XRP in escrow. On average, Ripple sold 200 million XRP per month to large investors and over-the-counter.
At launch, Ripple distributed 55 billion XRP across 11 ripple wallets, each holding 5 billion XRP. The transaction movements on the wallets can be tracked in the XRP explorer. The following list shows the balance of the respective wallets from the start until today:
| Escrow wallets | Amount of XRP in escrow |
| r9NpyVfLfUG8hatuCCHKzosyDtKnBdsEN3 | 0 |
| r9UUEXn3cx2seufBkDa8F86usfjWM6HiYp | 0 |
| rB3WNZc45gxzW31zxfXdkx8HusAhoqscPn | 0 |
| rDdXiA3M4mYTQ4cFpWkVXfc2UaAXCFWeCK | 0 |
| rKDvgGUsNPZxsgmoemfrgXPS2Not4co2op | 0 |
| rN8pqRwLYuuvY7pUHurybPC8P6rLqVsu6o | 4,000,000,000 |
| rKwJaGmB5Hz24Qs2iyCaTdUuL1WsEXUWy5 | 4,000,000,000 |
| rU9qmGM4Y6WWDhiNzkwVKBwwatcoE7YL1T | 5,000,000,000 |
| rNASJdZjY9dToHnNURi3HAUku3duPwbtD1 | 5,000,000,000 |
| rfWPPQBYqYmoFMdVnjzXCagJbz5uajSBXL | 5,000,000,000 |
| rh2EsAe2xVE71ZBjx7oEL2zpD4zmSs3sY9 | 5,000,000,000 |
| rhEwsCWDCVxDiKxGJAKM6VuXC8EFtJP5gQ | 5,000,000,000 |
| rncKvRcdDq9hVJpdLdTcKoxsS3NSkXsvfM | 5,000,000,000 |
| rp6aTJmW3nq1aKt3Jmuz4DPRxksT5PBjpH | 5,000,000,000 |
| rsjFB8mPWqiZgPUaVh8XYqdfa59PE2d5LG | 5,000,000,000 |
| rw2hzLZgiQ9q62KCuaTWuFHWfiX7JWg3wY | 1,000,000,000 |
| rDqGA2GfveHypDguQ1KXrJzYymFZmKxEsF | 600,000,000 |
| 49,600,000,000 |
The regular sales have been strongly criticized by the community in the past, as they are suspected to increase the selling pressure on XRP and thus force investors to sell XRP. As a result, the price of XRP falls and causes a persistent stagnant performance, at least in theory.
Ripple has often pointed out that they have no influence on the price development of XRP, as the quantities sold are considered too small to be able to significantly influence the price. Also the regular sales of the former co-founder of Ripple, Jed McCaleb, have no influence on the price of XRP according to the latest research.
McCaleb received a large amount of XRP as compensation after his exit from Ripple, which he can freely dispose of. However, he is contractually obliged not to sell more than the fixed amount per month in order to prevent market dumping. To date, McCaleb is said to have sold almost 1 billion XRP and to still hold 4.7 billion XRP.
The last published quarterly report shows that Ripple’s income from XRP sales in the fourth quarter of last year, with revenues of $13 million compared to $66 million in the third quarter, has fallen by more than 80%. In addition, XRP’s programmatic sales have been completely discontinued.
| Sales Summary (dollars in millions) | Q3 2019 | Q4 2019 |
|---|---|---|
| Institutional direct sales (OTC) | 50.12 | 13.08 |
| Programmatic sales | 16.12 | 0 |
| Total sales | 66.24 | 13.08 |
At the end of 2019, Ripple raised a record USD 200 million in venture capital in a new round of financing. The financing round was led by the investment company Tetragon, Ripple Partner SBI Holdings and Route 66 Ventures. The company now has sufficient capital to continue to develop the ecosystem.
Ripple plans IPO in 2020
In mid-January, Asheesh Birla, Senior Vice President of Products at Ripple confirmed that the company was considering an initial public offering (IPO) within the next 12 months. Brad Garlinghouse said:
In the next 12 months, you’ll see IPOs in the crypto/blockchain space. We’re not going to be the first and we’re not going to be the last, but I expect us to be on the leading side… it’s a natural evolution for our company.” – @bgarlinghouse at #WEF20.
It remains to be seen when further details will follow and whether these developments will have an impact on the price of XRP. Currently, XRP is following last night’s flash crash and is down 9.8%, to a price of USD 0.2088.
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