Ripple sold $336 million of XRP tokens

Ripple has continued to pour billions of dollars into its cryptocurrency, XRP, after spending approximately $2.6 billion on it in the most recent quarter.

The company, which is still engaged in a contentious SEC dispute over the securities classification of XRP, made somewhat more money by selling XRP over the counter, bringing in more than $2.9 billion in Q1.

Analysis has revealed that 88% of XRP sales revenue generated each quarter was used by Ripple to purchase additional cryptocurrency from secondary markets. When compared to the same period in the previous year, this new strategy of buying additional cryptocurrency proved 6% more cost-effective.

In Q1, XRP increased by almost 60%, helped by comparable increases in the value of ether (ETH) and bitcoin (BTC).

Last quarter, Ripple generated net XRP sales of about $361 million, with tokens going to customers who use its “On-Demand Liquidity” (ODL) blockchain-powered payment rails.

The new bank-focused settlement technology RippleNet is distinct from Ripple’s ODL, which is currently unable to handle XRP owing to regulatory issues.

Users of ODL purchase XRP from Ripple in transactions that have no impact on the cost of cryptocurrencies on exchanges. It stopped automating the sale of XRP in 2019.

Since the SEC charged the company and its executives in December 2020, Ripple has now invested $10.9 billion in the purchase of XRP. According to the SEC, Ripple’s previous XRP transactions amounted to a $1.3 billion unregistered securities offering.

Only $80.4 million in XRP purchases had been disclosed by Ripple up to that point.

The purchases made by Ripple come at a time when ODL-related sales have increased significantly and are currently at $14 billion as a result of the SEC’s litigation. 

Since the allegations first surfaced, Ripple has effectively recycled 78% of its XRP sales revenue by purchasing the token on secondary markets. 

Because of the US financial crisis in March, the company claimed that it had temporarily stopped purchasing XRP.

Additionally, the 2023 XRP Markets Report discussed new regulatory frameworks that have been proposed in the European Union (EU), the United Kingdom (UK), and the United Arab Emirates (UAE). These regulations will focus primarily on licensing, activity-based frameworks, and crypto. 

I am Vishal. I post articles about the cryptocurrency markets. I'm pursuing a BBA degree. My home is in Navi Mumbai, Maharashtra.I'm constantly interested in new advancements in this industry and I learn something new about it every day. I would love to share such information with you all.

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