Ripple Co-Founder Steadily Cashing Out His XRP: Report

Colin Muller

The crypto analytics group Flipside have posted a new report on XRP’s cash flows, and the general discovery is that there is not much actual use of the digital asset by ordinary users.

Flipside have observed that most of the flow of XRP occurs exclusively between exchanges and top holders of the asset, whom we might term “whales”. Most of the rest is flow between the asset’s escrow system, the founders’ wallet, and exchanges.

The group has produced an animated infographic of these flows.

Very little economic usage?(source: Flipside Crypto)

The report also found that flows generally dropped significantly during the weekends. Comparing this trend to other high-volume digital assets like OAN and Zilliqa (ZIL), Flipside surmise that this is further evidence that XRP’s primary use is for trading and speculation on exchanges.

The report reads:

The fact that these users are only trading with exchanges suggests that most people using XRP are either market makers or speculators, and not actual consumers.

Finally, piggybacking on the recent revelation that Ripple Labs co-founder Jed McCaleb has started selling XRP en masse, Flipside observed that this trend is continuing with the use of a seperate wallet owned by McCaleb. This wallet is using XRP’s built-in decentralized exchange (DEX) to trade for USD, and then liquidating this USD transfer through Bitstamp.

CryptoGlobe recently reported that the so-called “XRP army” seems to be fading, with a sharp drop recently in the asset’s mention on Twitter; this drop is far sharper than that observed for other cryptos like Bitcoin and Ethereum.

collapse vs bitcoinXRP chart by TradingView

XRP has been collapsing in price compared to Bitcoin, so far in the month of May.

Featured Image Credit: Photo via Pixabay.com