Ripple is taking steps to improve the accuracy of XRP’s volume and sales data, per a company blog post this week. In the post, Ripple cited multiple recent reports that have highlighted significantly overstated cryptocurrency volume and sales figures. These reports, issued by Bitwise, the Blockchain Transparency Institute and others, suggest inaccuracy and exaggeration of up to 95% of volume.
Ripple says “as an industry, we can and must do better,” although the firm isn’t “claiming to have an exact solution.” Instead, Ripple is taking direct steps to address concerns and questions about cryptocurrency market structure and reporting at digital asset exchanges. Per Ripple, the steps are as follows:
- We are actively working with trusted partners in the space to better understand the scope and scale of the problem.
- We are evaluating our approach to XRP volume reporting, including reviewing new options and requirements for sourcing market data.
- We are taking a more conservative approach to XRP sales this quarter
The short term impact on Ripple will be significantly lower sales of XRP in Q2 2019 as a percentage of reported volume compared to Q1 2019. Rather than the programmatic sales of XRP hitting the stated goal of 20bps, as reported by CoinMarketCap data, the actual figure will likely drop to less than 10bps.
Ripple calls on others in the industry to follow their lead, cautioning that without a higher level of trust among institutions and consumers in the data, we will not see broader adoption of digital assets and blockchain technology.