More than 2,000 crypto investors have signed an online petition calling on Ripple to stop selling so many of its XRP tokens, which they believe is behind the cryptocurrency's poor price performance since the end of June.
"Ripple continue dumping billions of XRP on us, crashing the price," the petition - which reached 2,000 signatures a week ago - says. It adds:
Its amazing this sort of behaviour is widely accepted in the crypto world. Sure we know that XRP is a solid coin with major potential but this needs to stop!
XRP, which hit is record peak of $2.85 in early January, 2018, reached a cyclical high of $0.5055 on the June 22 this year, but has since fallen by 47%. By comparison - since hitting its $13,930 cyclical high on June 26, bitcoin has fallen just 25%.
Dumping on the Market
The petition, posted on Change.org by a site user called Crypto Bitlord, suggests the only explanation behind such relatively poor performance is that Ripple - the company that developed the blockchain that verifies XRP transactions - is dumping XRP on the market.
"Every day there is good news - a new bank or partnership," it says, but still the price keeps falling.
The only logical explanation is that Ripple are dumping on us. And not small amounts either. Literally billions. We have seen the reports of them disclosing this so its a fact.
While Ripple will likely be aware of the dismay felt by many who have been prompted to sign the petition, it's unlikely the company will alter its selling policy.
In early August, Ripple announced it had unlocked a billion XPR tokens from escrow worth around $314 million. The company sold $251.5 million worth of XRPin the second quarter. Rajarshi Mitra, crypto analyst at FX Street said:
While Ripple owns more than half of the total supply of XRP, the majority of it remains in escrow. Since 2016, Ripple has sold XRP worth $1.14 billion, of which 64% were sold to institutions and 36% to crypto exchanges.