Actions speak louder than words! Ripple suspends regular sales, but prices show no improvement.

Ripple (XRP), which has long been criticized by the cryptocurrency community for its selling mechanism, finally showed some improvement in the first quarter of this year. According to data from The Block, the total amount of sales in the first quarter was at its lowest level since 2016. Despite the sharp decrease in XRP token sales, its price still dropped by over 9% in the first quarter.

Ripple Commits to Halting "Programmatic" Sales

Prior reports on XRP token have highlighted the company's internal sales, with Ripple officially controlling 55% of the total circulation and selling billions of tokens over the past few years to boost company profits, resulting in significant losses for XRP holders.

According to Ripple's Q4 2019 report, Ripple claims to have suspended "programmatic" sales from the escrow accounts, focusing solely on over-the-counter (OTC) sales with specific strategic partners, stating that these "partners" will enhance the utility and liquidity of XRP.

Ripple has delivered on its commitment, with the first quarter XRP token sales hitting the lowest level since 2016. It only sold $1.75 million in the first quarter, down 144 times from Q2 2019.

The chart shows a significant decrease in sales volume since Q2 2019, with 1,300 sales in Q4 of last year dropping to $1.75 million in Q1 of this year.

Does Halting Sales Help Prices?

Despite the apparent improvement in the data, The Block's research director Larry Cermak has a different perspective, stating:

This is the second consecutive quarter where Ripple did not sell XRP in the form of "programmatic sales," but in reality, these are the results of Ripple directly selling XRP on exchanges. Overall, Ripple has sold $1.22 billion worth of XRP to date.

Furthermore, Larry mentions that halting sales hasn't done much to help XRP prices, as the price of XRP dropped over 9% in the first quarter.

XRP holders not only face losses from official institution sales but also fall victim to social media platform "bear scams."

Previously, YouTube has been a common ground for scams, where victims are instructed to send 2,000 to 500,000 XRP tokens in exchange for an immediate return of 20,000 to 5,000,000 XRP tokens.

Ripple CEO Brad Garlinghouse has officially filed a lawsuit against YouTube in the San Francisco federal court, condemning the platform for allowing pervasive harmful scam activities that severely impact Ripple's public image, brand, and reputation, demanding compensation for damages.