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Cryptocurrency firm Ripple, which is behind the Ripple platform and its native cryptocurrency XRP (XRP), has promised a higher degree of accuracy for their XRP volumes and sales report. The announcement was made in a blog post by the company on June 3.
In the post, Ripple discusses how the industry “can and must do better” when it comes to accurate reporting. They cite several industry reports, including the recent SEC report from Bitwise, a report by Blockchain Transparency Institue, and a report by Data Accountability & Transparency Alliance. These reports suggest that inaccuracy is a key problem in cryptocurrency reporting and that some numbers are exaggerated by companies.
This problem appears to be significant, with Bitwise claiming that approximately 95% of Bitcoin exchange trading volume on CoinMarketCap being inaccurate or even fake (which even previously made CoinMarketCap warn crypto exchanges). Bitwise argues that this gives a false impression of the size of the Bitcoin market.
Ripple appears to be taking a stand against inaccuracy in the market and attempting to lead the way into a crypto future reliant on higher accuracy. They have outlined several steps they are taking to rectify the issue which includes working with trusted partners to understand the scope of the problem, evaluating their approach to XRP volume reporting, and taking a more conservative approach to XRP sales this quarter.
Ripple: More Accuracy, More Adoption of Crypto & Blockchain
In the post, Ripple stated:
“In the short term, this means Ripple’s sales of XRP in Q2 2019 will be substantively lower (as a percentage of reported volume) than in the previous quarter—with our stated target of 20bps for programmatic sales of XRP volume, as reported by CoinMarketCap, likely dropping to less than 10bps. Longer term, by being more demanding about our expected standards for market structure and reporting, we hope to begin raising the bar industry-wide.”
In the blog post, Ripple also explains why the crypto firm is choosing to take action now. Ripple argues that they believe in transparency and trust, and without trust, they cannot expect “widespread adoption of digital asset or blockchain technology.” Trust and transparency are essential for any emerging market that wants to become mainstream.
There are still people wary of cryptocurrency and accusations of inaccurate reporting is likely to fuel that mistrust, so working towards higher accuracy is likely to benefit the industry as a whole. Ripple is looking at the big picture and making changes to ensure the longevity of the cryptocurrency market.