A new study reveals that Ripple Labs made more than half a billion dollars during the 2018 bear market by dumping pre-mined XRP tokens on to investors.
Ripple Hits 19-Month Low
It’s common knowledge that when Ripple was first created, all 100 billion XRP tokens in the total supply were pre-mined prior to launching. 80% of these tokens were distributed among the Co-Founders and operating bodies of the company, which over time have been routinely dumped onto the market.
The dumping is a result of two things; former business partners exiting out of the company and Ripple Labs selling XRP to fund new endeavours.
According to a new analysis published by Crypto.IQ, Ripple have been systematically dumping a mean average of 2.425 Billion XRP tokens every year since 2014. During the crushing 2018 bear market, when a vast majority of coins had unravelled by more than 90% in value, Ripple Labs banked a healthy $533.6 Million profit.
Over the course of that 2018 bear market, XRP price plummeted by more than 88% in value against BTC pairing, leaving investors who purchased the dumped tokens at a major loss.
Right now, the third-largest cryptocurrency is currently trading at a 19-month low at around 0.00003203 BTC. At its height in January 2018, Ripple 00 traded at 0.00018601 BTC, meaning that versus the peak, holders have seen losses of around 82% as of today.
According to the most recent quarterly report, Ripple Labs and the company’s former co-founders have so far sold a further $169.42 Million worth of premined XRP token over Q1, 2019. This number is expected to rise in the face of XRP’s rapidly decreasing value against Bitcoin.