Ripple Reports 97% Growth In XRP Sales For Q1 2021 Amid SEC Lawsuit
Ripple Labs continues to win despite its legal scuffle with regulators in the U.S. The firm has reported massive growth in its XRP token sales for Q1 2021. This was revealed in its recently published quarterly report.
Ripple’s XRP Volumes Increase
Ripple’s total sales of XRP amounted to $150.34 million, making it a 97% increase from the $76.27 million reported for Q4 2020.
Ripple attributes the growth in XRP sales to the growing demand for RippleNet’s working capital service On-Demand Liquidity (ODL).
The ODL is a RippleNet service that leverages XRP as a bridge between currencies to make cross-border payments.
Ripple says clients use ODL to source instant liquidity in XRP, which can be converted to fiat currencies in seconds. For RippleNet clients, this solution eliminates the need to hold pre-funded accounts for cross-border payments.
The blockchain company reported that the daily volume for XRP increased significantly in Q1 2021 compared to Q4 2020.
The average daily volume reported in the present quarter was $2.26 billion, a major difference from the $1.61 billion reported in the previous quarter.
In terms of escrow, Ripple stated that 3 billion XRP were released in line with prior quarters and the official escrow arrangement. An additional 2.7 billion XRP were returned and subsequently placed into new escrow contracts throughout the quarter. Per the report,
“Ripple continued to engage in sales to support ODL and key infrastructure partners as part of providing increased XRP liquidity to improve the ODL experience of certain customers, eliminating the need for pre-funding and enabling instant global payments.”
Ripple had previously acquired 40% of Asia’s leading cross-border payments firm Tranglo to meet the growing demand of ODL in the Asia Pacific region. Tranglo has a global network that spans more than 100 countries, 2,500 mobile operators as well as 1,300 banks/wallets, and 130,000 cash pickup points.
Ripple Thriving Despite Trouble With The SEC
Despite the Securities Exchange Commission (SEC) case alleging that Ripple and its executives sold unregistered securities worth $1.3 billion, the firm remains unflinching.
Ripple’s report shows that the lawsuit has not deterred investors from holding XRP. Q1 has been a time of XRP accumulation, with the number of whale accounts holding between 1 to 10 million tokens increasing 6.3%. This is a jump from 1,125 in Q4 to 1,196 in Q1.
The San Francisco-based firm has made a raft of appointments as it continues to forge ahead. The firm hired a new chief financial officer, Kristina Campbell, who was previously an executive at fintech firms Green Dot and PayNearMe.
Ripple also appointed former US Treasurer Rosie Rios to its board of directors. Rios is the 43rd treasurer of the US who served under President Barack Obama.