Ripple, the company behind XRP, promises a higher degree of accuracy for XRP volumes and sales.
In an official post, the company states that over the past few months analysts have criticized the crypto market. Particularly, it mentions the recent report by Bitwise, which claims that 95% of bitcoin trading volume is fake. Blockchain Transparency Institute and Data Accountability & Transparency Alliance (DATA) have provided similar numbers, the company notes.
Ripple aims to address these issues and secure the community’s trust. It acknowledges that it does not have a comprehensive solution. Nonetheless, it is already working with reliable partners to “better understand the scope and scale of the problem.”
Besides, the company is assessing its approach to XRP volume reporting, “including reviewing new options and requirements for sourcing market data.” It also says that XRP sales this quarter will be assessed conservatively. As a consequence, XRP’s sales in the second quarter of 2019 will be considerably lower than in the first quarter.
“In the short term, this means Ripple’s sales of XRP in Q2 2019 will be substantively lower (as a percentage of reported volume) than in the previous quarter—with our stated target of 20bps for programmatic sales of XRP volume, as reported by CoinMarketCap, likely dropping to less than 10bps,” Ripple writes.
Reports about fake trading volume first emerged in March. Back then, Bitwise unveiled the number of 95%, which it has recently confirmed on the site of the U.S. Security and Exchange Commission. It also criticized CoinMarketCap, saying that the website’s volume numbers and other data aggregators in the industry are “surprising because they are wrong.”
CoinMarketCap seems to be tackling this problem. In early May, it announced a new alliance called the Data Accountability & Transparency Alliance and promised not to include into its calculations those exchanges which fail to provide mandatory data by June 2019.
XRP has also experienced some problems lately. For example, observers pointed out several important discrepancies in Ripple’s reporting of its Escrow System. However, the company is still expanding. Recently, the largest bank in Thailand, Siam Commercial, launched support for Ripple transfers.