Ripple's financial report shows a buyback of nearly 46 million USD, while the custodial account releases 600 million XRP.

Despite controlling nearly half of the total circulating supply of Ripple (XRP) and facing long-standing concerns about sales, Ripple seems to be attempting to change this image. In the third quarter of this year, they conducted their first buyback of nearly $46 million worth of XRP tokens. However, their report indicates that approximately 600 million XRP tokens worth nearly $150 million have flowed out of escrow accounts, far exceeding the amount of tokens repurchased.

Official: Buyback to Support Healthy Markets

Ripple released itsQ3 market report on November 5th, aiming to increase transparency for Ripple, including quarterly sales updates, relevant announcements, Ripple's market perspectives, and a summary of the previous quarter.

The report first mentioned the recent development of Ripple's "On-Demand Liquidity (ODL)" platform, which allows the sender's currency to be converted into XRP tokens for transfer, enabling real-time settlement efficiency by using XRP for transfers and converting it into the target currency.

In October, Ripple once again provided benefits for institutional users of the ODL platform by offering credit lines, allowing eligible businesses to use ODL for cross-border payments and repay fees at a later date according to the contract.

In theQ2 report, Ripple emphasized that as financial institutions adopt ODL, XRP's market liquidity has also increased, with Ripple acting as an indirect buyer in the secondary market and continuing to buy XRP at market prices in the future.

Therefore, in the Q3 report, Ripple stated that it had repurchased nearly $46 million worth of XRP tokens to maintain market health and may continue to buy in the future.

The Magical XRP Escrow Account

Concerns arise regarding Ripple's escrow account (XRP Escrow). Although the official statement in the fourth quarter of last year indicated a pause in what was considered long-term "programmatic sales" that exerted downward pressure on the market, the escrow account still released 3 billion XRP in the third quarter, with 2.4 billion XRP returned, leaving 600 million XRP unaccounted for.

According to the Q3 sales list, ODL-related sales amounted to $81.39 million, with a total buyback of $45.55 million. However, this seems far from enough to offset the 600 million XRP (approximately $150 million) that was released.

Previously, in May of this year, Larry Cermak, Director of Research at The Block, believed that Ripple's suspension of programmatic sales was merely superficial, as XRP was actually moved to exchanges for sale. Today (11/11), he pointed out on Twitter that even with Ripple's buyback initiative, it would not make much difference.

It got so bad Ripple is starting to buy back. And that’s still not enough 😢

— Larry Cermak 🫡 (@lawmaster) November 10, 2020

However, since the release of the Q3 report, XRP's price has slightly improved. The price has risen from $0.233 to $0.256 at the time of writing, representing an increase of nearly 10%.