Ripple Labs has a long history of dumping on the Ripple (XRP) market at the expense of Ripple (XRP) holders and netting hundreds of millions of dollars of profits. Indeed, 100 billion Ripple (XRP) were originally created, all of which were owned by Ripple Labs, the Co-Founders, or their subsidiaries. So far, 44 billion Ripple (XRP) have been put into circulation almost entirely via dumping for profit. Now however, Ripple Labs claims to be a disciplined and responsible stakeholder since they only dumped $1.75 million of Ripple (XRP) in Q1 2020.
First off, the crypto market was very volatile and at times extremely bearish during Q1 2020. The price of Ripple (XRP) surged from $0.20 on New Year’s Day to $0.33 by the middle of February, but then began to collapse as the rest of the crypto market crashed amid the Coronavirus economic shutdown. Ripple (XRP) ultimately cratered to as low as $0.12 on March 12.
Although this is just speculation, it is likely that if the Coronavirus never happened and Ripple (XRP) continued increasing beyond mid-February, then Ripple Labs would have dumped plenty of Ripple (XRP).
Essentially, Ripple Labs had no chance to dump Ripple (XRP) as usual, since if they did, it would have destroyed the Ripple (XRP) market via completely draining the liquidity from order books. Obviously Ripple Labs does not want that to happen, since the other 56 billion Ripple (XRP) they still haven’t sold would become worthless.
In other words, the main reason that Ripple Labs didn’t dump tons of Ripple (XRP) as usual in Q1 2020 was in the interest of ensuring that they could dump in the future. Ripple Labs is trying to spin it like they are responsible and disciplined stakeholders, but really they are just motivated by their future profits.
Indeed, if Ripple Labs was really a disciplined and responsible stakeholder, they would not have endeavored to dump as much as they possibly could everytime Ripple (XRP) entered a bull market.
Looking at past data, as Ripple (XRP) began to surge in 2017, Ripple Labs dumped more and more Ripple (XRP), totaling $182 million, which definitely suppressed the Ripple (XRP) rally of 2017 from reaching its full potential.
Ripple Labs should have eased up on the dumping in Q1 2018 if they were truly disciplined and responsible stakeholders. The crypto market quickly turned sour, but instead they dumped $168 million of Ripple (XRP) in Q1 2018 alone. It seems like extremely greedy and irresponsible behavior and it certainly accelerated and deepened the Ripple (XRP) price collapse from $3.75 to $0.60 during Q1 2018.
Even during the rest of the bear market of 2018 Ripple Labs continued the dumping frenzy, giving the Ripple (XRP) market no chance to recover. Indeed, Ripple Labs dumped $365 million of Ripple (XRP) in the last three quarters of 2018, which is an unbelievable and irresponsible amount considering how much the Ripple (XRP) market was struggling.
This Ripple Labs dumping frenzy during the bear market of 2018 undoubtedly lengthened and deepened the bear market for Ripple (XRP), and helped push Ripple (XRP) down to 2018 bear market lows of $0.25.
In the first half of 2019 as the crypto market entered a bull run and Ripple (XRP) rose to $0.50, Ripple Labs once again proceeded with an insane dumping frenzy, dumping $420 million in the first two quarters of 2019, stopping the Ripple (XRP) rally from reaching its full potential and helping to end the rally early.
Further, even as the price of Ripple (XRP) collapsed for the rest of 2019, Ripple Labs still dumped $79 million of Ripple (XRP), despite that dumping being unnecessary since Ripple Labs already had a glut of money from the previous dumping. This dumping helped push Ripple (XRP) to new lows of $0.19.
Even as the crypto market rebounded in the first month and a half of 2020, Ripple (XRP) only rose as high as $0.33, which is relatively low for Ripple (XRP), before reversing course and dropping as low as $0.12 in March. The crypto market has significantly recovered as of this writing, but Ripple (XRP) is still only at $0.22.
Clearly, Ripple Labs had no chance to dump en masse in 2020. The Ripple (XRP) market is doing poorly and has already been sucked dry by previous dumping. Now Ripple Labs will act like they are being responsible by not dumping, except in reality they are just waiting for liquidity and demand to come back to the Ripple (XRP) market so that they can dump crazy amounts again without flatlining the market.
Ripple (XRP) is still an asset that should be absolutely avoided, since as soon as the Ripple (XRP) market starts to see a significant rally in the future, Ripple Labs will undoubtedly dump as much as they can and reverse that rally. In the end, when it comes to investing in Ripple (XRP), Ripple Labs always wins and all the other Ripple (XRP) HODLERS always lose.