Over 2000 Cryptocurrency Investors Sign Petition Asking Ripple to Stop Selling XRP

Neil Dennis

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.

Is XRP a Commodity or a Security? CFTC Chairman Has No Idea

Heath Tarbert, the Chairman of the U.S. Commodity Futures Trading Commission (CFTC) has said it isn’t yet clear whether the XRP token is a security or a commodity.

During an interview with news outlet Cheddar, Tarbert was asked whether new cryptocurrencies other than bitcoin and ether will be falling under the CFTC’s jurisdiction, with XRP being used as an example. Tarbert replied:

It’s unclear. Stay tuned I’d say. Part of the issue is that our jurisdiction we share with the SEC [Securities and Exchange Commission]. If it’s a security, it falls under their jurisdiction. If it’s a commodity, it falls under ours.

The CFTC Charmain noted that the organization has been working closing with the Securities and Exchange Commission (SEC) to figure out which cryptoasset are securities, and which cryptoasset are commodities.

Bitcoin, the flagship cryptocurrency, and ether, the largest altcoin by market capitalization, are commodities as Tarbert has in the past revealed both cryptocurrencies fall under the CFTC’s jurisdiction.

 At the time, Tarbert said:

We've been very clear on bitcoin: bitcoin is a commodity. We haven't said anything about ether—until now. It is my view as chairman of the CFTC that ether is a commodity.

Tarbert has late last year also acknowledged there’s “ambiguity in the market” on the status of various cryptoasset, adding he believes “similar digital assets should be treated similarly.” When talking about cryptoasset sold via initial coin offerings (ICOs), he also noted an asset can start off as a security and become a commodity.

Whether XRP is a security has been debated for long now. In 2018, several XRP investors filed a lawsuit against Ripple over the token, claiming the firm violated state and federal securities laws. In response, Ripple argues that XPR isn’t a security because it’s “not an investment contract.”

Featured image via Pixabay.