Editor's Note: This article comes fromBlock beats BlockBeats (ID: BlockBeats), reprinted by Odaily with authorization.
Editor's Note: This article comes from
Block beats BlockBeats (ID: BlockBeats)
Block beats BlockBeats (ID: BlockBeats)
, reprinted by Odaily with authorization.
After nearly a week of fermentation, Coinbase delisted XRP and finally the dust settled. As an old-fashioned cryptocurrency project with the third largest market value in the world except Tether, Ripple has almost launched most of the trading platforms, which means that the delisting of XRP is not only detrimental to project parties or investors, but also to platforms that provide trading services. Also deeply affected.
And if XRP is really deemed non-compliant by regulators, which platform's trading volume will be impacted the most?
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Image credit: The Block
The picture above shows the statistics of Ripple’s annual sales of XRP. Image source: The Block
From the statistical data, Ripple sold the largest amount of XRP in the second quarter of 2019, and stopped selling operations when the market performed better. In fact, Ripple has not sold tokens to exchanges since the fourth quarter of 2019, but it is also likely that the sales were only through institutions.
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Image credit: The Block
Handing over to an institution may be through the acquisition of a company. According to statistics, in June and November 2019, Ripple made a total of $50 million in equity investments in MoneyGram in exchange for its stock and board seats. It is understood that Ripple currently holds about 9% of the latter's stock, but in November this year, Ripple sold about one-third.
According to MoneyGram's earnings report, Ripple has paid it $52.3 million worth of XRP since 2019, and the company classifies these expenses as "market development expenses" rather than revenue.
Who "abandoned" XRP
Since the SEC filed the lawsuit, as of December 29, several platforms and companies targeting US users have stopped XRP transactions or related services. Trading platforms include Coinbase, Bitstamp, OSL, CrossTower, Beaxy, and OKCoin; market makers/OTC merchants include Jump trading, Galaxy Digital, and B2C2; asset managers include Bitwise and 21 Shares; and payment processing company Simplex.
For trading platforms, encrypted assets with fans means potential trading volume, which means the accompanying transaction fees. According to data from CoinMarketCap, even with lawsuits entangled and multiple trading platforms being delisted, the current daily trading volume of XRP is nearly $10 billion.
Image credit: The Block
This data is second only to Bitcoin, Ethereum, and Tether, comparable to Litecoin, and far surpassing projects such as Bitcoin Cash and Polkadot.
According to The Block's analysis, the current transaction volume generated by XRP can account for 5-20% of the total transaction volume, and depending on each trading platform, if it is completely removed from the shelves, it will reduce the platform's total revenue by at least 5%. Take Bitstamp, which focuses on the European market, as an example. In 2020, the trading volume of XRP accounted for 18.5% of the total trading volume of the platform.
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Image credit: The Block
