Ripple’s Brad Garlinghouse tries to dispel speculation amid reports of high inflation rate
Ripple has substantially reduced XRP sales. While Ripple had claimed to have remained transparent about the actual figures of XRP sales in its recent market report, the blockchain firm was at the receiving end of allegations which claimed that it provided manipulated figures. One of the front-runners of the industry, Ripple, has drawn passionate and very vocal followers. However, the mounting furore regarding the firm dumping XRP has continued to gain traction.
On the issue, CEO Garlinghouse tweeted,
“XRP sales are about helping expand XRP’s utility – building RippleNet & supporting other biz building w/XRP ie Dharma & Forte. Reality is we DECREASED our sales by volume Q/Q and since then the inflation rate of XRP circulating supply has been lower than that of BTC and ETH.”
According to ViewBase’s analysis, annual inflation rate for XRP stood at 27.95% after taking into account the 1 billion XRP released every month. Inflation rate of XRP is way higher than that of Bitcoin and Ethereum which stood at 3.77% and 4.63%, respectively. The entire chunk of the released XRP is not used up; instead, some are sent back to escrows. Without knowing the actual amount of XRP sent back to escrows every month, inflation rate of the crypto cannot be rightly determined and hence, remains ambiguous.
According to ViewBase, 1 billion XRP is used for calculation. However, a user suggested that 240 million XRP is consumed while the rest is sent back to the escrow and that this would make sense considering what Garlinghouse was tweeting.
However, even with only 240 mn sent to the market, the annual inflation rate would come up to ~7%, which is still higher than that of BTC and ETH.
Garlinghouse’s tweets were directed to some “questionable sources” that according to the CEO, were spreading FUD regarding matters relating to Ripple’s litigation and XRP sales which “compelled” him to set the record straight. Speculation arose after CoinMetrics accused Ripple of under-reporting the actual figures in its escrow.