The crypto market pulled out of the long winter in April 2019, led by Bitcoin. However, things haven’t been exactly rosy for the market, although there has been lots of optimism. Despite having not broken the price record in 2019, Bitcoin performed better than some like XRP. Indeed, a simple look at market data reveals that XRP was one of the worst-performing cryptos in 2019.
At the moment, the crypto is down by 45% compared to its value at the beginning of 2019. Now, some quarters within the crypto community fear that the bearish sentiment of 2019 might make another base in 2020.
Ripple’s XRP Sellouts
One of the issues creating so much controversy within the XRP community is Ripple’s continued sale of large amounts of XRP on a monthly basis. The recent one happened on December 31st, 2019. On this day, Ripple moved around 200 million XRP valued at about $38 million from the Escrow account to its wallet on an exchange. The transfer was reported on twitter by Whale Alert.
The issue has created a rather heated debate within the community, with a section of the fans threatening to create a petition to fork XRP. This move hasn’t been fruitful so far.
XRP Tokenomics
Another crypto fan came out to point out two major issues bedeviling XRP. In a twitter post, one Mati Greenspan said that Ripple’s decision to hold a large amount of XRP is an issue of concern. Mati is the founder of Quantum Economics.
Yes. XRP tokenomics is a bit funny that way. The two main issues…
1. Ripple holding a large portion of tokens and selling into the rallies.
2. Usage of the network does not necessarily require XRP tokens. Banks can use Ripplenet w/o ever touching the token. https://t.co/oDM2dO1vhV
— Mati Greenspan [tweets are not trading advice] (@MatiGreenspan) December 29, 2019
Going forth he also pointed out that institutions, like banks, can use Ripple’s payment solutions without using XRP.
These two issues are bound to affect XRP’s price, and that’s one reason why some investors are a bit bearish for XRP in 2020. Still, the year is only beginning and the crypto market is known to change drastically. We can only wait and see.
The post Ripple’s XRP Poor Performance In 2019 Is Triggering Some Bearish Undertones In 2020 appeared first on ZyCrypto.
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