In order to boost demand for XRP and support healthy markets Ripple purchases $46 million worth of XRP for the first time.
The company also said that it is building ODL capabilities to act as a catalyst to source XRP liquidity.
A move to support its new product
After reporting about Ripple’s new regional headquarters in the modern Metropolis of Dubai, Ripple grabs headlines once again. The giant organization has for the first purchased a sizable amount of XRP almost worth $46 million in the 3’rd quarter of 2020. Despite already being in ownership of more than half of the digital asset’s supply, Ripple made this move and Ripple has reasons for it.
It has reasoned that the purchase was made in order to support healthy markets which could mean that Ripple is looking forward to creating interest around its native currency XRP which probably could give a boost to its price. It has launched a new product called ‘Line of Credit Beta’ and it will also continue purchasing in the future in the light of supporting its new product. Line of Credit beta allows on-demand liquidity or ODL customers to purchase XRP on credit from Ripple. The ODL solutions will allow for the infusion of retail customers for XRP as it leverages XRP for fund transfers.
The spokesperson from Ripple said:
“Long-term, Ripple is building new ODL capabilities to dynamically source XRP liquidity from the open market, not just Ripple.”
Tight US regulations hindering growth
For a long time Ripple has been experiencing troubles caught in legal cases as well as tight security regulations in the US markets. Ripple has come out to openly talk about the rigidity and extreme stringent regulations surrounding the crypto markets which is why operating in these markets spells trouble and hinders the growth.
The spokesperson indicating towards its Q3 sales said that the ODL-related sales include XRP sales to support ODL which includes line of credit and key infrastructure. Ripple has apparently also sold $35.84 million worth of XRP to ODL customers in Q3 and that too on a net basis. Compared to this, it had sold $32.55 million worth of XRP to direct institutions in Q2. As of now in Q3 nothing related to programmatic sales have been reported.
XRP price today is $0.256899 with a 24-hour trading volume of $2,345,072,684. XRP price is up 1.9% in the last 24 hours with a circulating supply of 45 Billion coins and a maximum supply of 100 Billion coins.
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