Ripple Buys $46 Million XRP to Support ‘Healthy Markets’
The United States – Before 2020 ends, Ripple decided to buy $46 million XRP for the first time, despite owning nearly half of the currency’s supply. According to Ripple executives, this purchase aims to support “healthy markets” and attract more investors. A Ripple spokesperson confirmed that the company would continue to purchase XRP to support new projects, including the On-Demand Liquidity (ODL). The ODL solution utilizes XRP for fund transfers.
Although Bitcoin has the strongest correlation with other cryptocurrency assets, XRP has managed to bounce back and take off higher. Ripple believes that purchasing the $46 million XRP can help the digital asset and lean towards XRP’s dull price.
According to the executives, the $46 million can help Ripple’s new product, Line of Credit, in attracting more customers to buy XRP on credit. With this strategy, it is clear that Ripple is building new ODL capabilities to use XRP liquidity in long-term use dynamically.
Despite holding nearly half of XRP’s supply, Ripple still actively works to bridge cross-border payments and help more global banks in different countries. Despite the coronavirus pandemic, Ripple has impressively maintained its stance on programmatic sales and did sell XRP very well.
This fourth most valuable cryptocurrency has indeed experienced huge transactions this 2020. Large investors are keenly rushing to purchase the undervalued crypto. Thousands of people believe that Ripple’s XRP will surely become better than Ethereum and Bitcoin in 2021.
Since Ripple plays dual roles, it is cheaper and faster than other altcoins as a currency and a payment platform. Unlike its crypto rival, Bitcoin, Ripple has gained plenty of attention from the most prominent global banks, including Standard Chartered and Barclays, for cross-border transactions.
Last quarter, Ripple announced its new beta service called Lie of Credit, which allows more customers to purchase XRP on credit directly from Ripple. With this project, more customers can use this digital asset and accelerate their business performances and scales. Line of Credit aims to reach new customers and enter new markets. According to Ripple, ODL customers have piloted this project, and the initial reviews are overwhelmingly positive.
With the latest “Line of Credit” beta service, Ripple will start buying XRP to reduce supply. Many in the community worries about oversupply that might lead to poor price performance throughout 2021. However, Ripple assured that they will prevent it from happening and will continue to support healthy markets.