Ripple reported strong XRP whale accumulation while still being in court with the SEC as the quarter indicates the market has plenty of confidence in Ripple’s defense so let’s find out more in our latest ripple news.
Ripple released its Q1 2020 report which shows a solid performance during the first quarter of the year and includes XRP sales that were up to 100% compared to the previous quarter and the data showing accumulation from the whale holders despite the current US SEC lawsuit. The XRP advocates grew in confidence as the lawsuit went on and in part, this was due to the reports of the questionable events surrounding the case. The New York Times posted an article on the “revolving doors” appointment of former SEC Jay Clayton at One River which is a hedge fund that reported strong purchases of BTC and ETH which eventually sparked concerns of conflict of interest.
As reported by Ripple, the first quarter of the year for the crypto space as a whole was groundbreaking with the total crypto market cap starting the year at $776 billion, forming a steady uptrend to end the quarter to a high point of $2.5 trillion. Ripple’s XRP sales hit $150 million in 2021 versus the $76 million in the last quarter of 2020 which is an increase of 97%. The company said that the on-demand Liquidity service contributed to the rise as ODL refers to the cross-border payment solution using XRP without the need to pre-fund accounts.
Ripple attributes the sale growth to a deeper engagement from the ODL customers and mentioned a drive to expand the ODL corridors during the APAC region which focuses on Southeast Asia. As well, the data shows that Q1 2021 was a period of XRP accumulation by the whales which is how Ripple reported strong XRP whale accumulation. The number of whale wallets that hold up to 10 million XRP increased from 308 to 319. Likewise, the number of wallets holding between 1 million and 10 million XRP went up from 1,125 to 1,196. The SEC filed charges against Ripple over the allegations that along with two executives, it sold $1.3 billion of unregistered securities over a seven-year period.
A critical component of ripple’s defense is the assumption that XRP is the same as Ethereum or Bitcoin which the SEC deems non-securities. However, the SEC says that Ripple was not right to make this assumption. Jay Clayton joined One River Digital Asset Management as a paid advisor and the company invests hundreds of millions into BTC and ETH.
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