Ripple has been working hard to boost the whole XRP ecosystem and also to push the mainstream adoption of the digital asset XRP.
The only complain that the XRP army of fans has is the fact that the various achievements of the company are not mirrored in the price of the digital asset XRP.
Now, XRP is trading at $0.255916.
Ripple buys back XRP for the first time
Now, it’s been just revealed by the Block Crypto that Ripple bought $46 million worth of XRP in the third quarter of 2020 for the very first time, despite the fact that the firm already owns nearly half of the crypto’s supply.
According to the online publication mentioned above, Ripple said that they made this move in order to support “healthy markets,” – it’s possible that the firm was referring to creating interest around XRP and thereby raising its price.
It’s been also revealed that a Ripple spokesperson told The Block that the firm could continue to purchase XRP also for another reason – to support its newly launched product — Line of Credit beta.
Just in case you don’t know, this allows On-Demand Liquidity (ODL) customers to buy XRP on credit from Ripple. It’s also important to note the fact that the ODL solution leverages XRP for fund transfers.
“Long-term, Ripple is building new ODL capabilities to dynamically source XRP liquidity from the open market, not just Ripple,” according to the spokesperson.
Ripple’s Q3 sales were also related to its ODL solution. “ODL-related sales include XRP sales to support ODL (including Line of Credit) and key infrastructure,” said the spokesperson as cited by the same online publication.
“Ripple sold $35.84 million worth of XRP to ODL customers in Q3 on a net basis, compared to $32.55 million worth of XRP to direct institutions in Q2. There were no programmatic sales, i.e., XRP sales to cryptocurrency exchanges, in Q3,” the same notes reveal.