According to a Bitwise report, there is foul play in the crypto industry because it is unregulated, which makes exchanges culpable to manipulation as some even inflate their trading volumes. The Bitwise researchers have discovered that up to 95% of trading volumes are fraudulent. This is where Ripple steps in.
Ripple Working to Enhance Accuracy
The crypto firm is working with reliable partners in the industry to understand the scale and scope of the problem and evaluate its XRP volume reporting. Going into Q2 2019, the company is likely to take a cautious approach in reporting XRP sales. The aim is to enhance transparency, and based on these proposals, the target XRP sales for the quarter are likely to decline to below ten basis points
In a blog post on June 3, Ripple discussed how the industry can do better in terms of accurate reporting. The blog cites various industry reports, including the recent Bitwise report to the SEC, the report by Data Accountability & Transparency Alliance, and one by Blockchain Institute. All these reports cite inaccuracy in reporting as the main problem the cryptocurrency industry is facing as some companies exaggerate their volumes.
Inaccurate Reporting May Hurt the Industry
Ripple further explains in the blog post why it is choosing to act now. The cryptocurrency firm states that it believes in trust and transparency, without which there cannot be mainstream adoption of cryptocurrencies or blockchain technology. Ripple further asserts that for an emerging market that is seeking mainstream adoption, transparency and trust are essential components.
>> Facebook Coin: Platform will Announce Cryptocurrency in June
There is already skepticism regarding cryptocurrencies because of their unregulated nature and the allegations of inaccurate reporting will deepen the problem; therefore working on improving accuracy in reporting will be beneficial to the whole industry. Ripple is currently looking at the bigger picture, and by instituting changes, it is trying to ensure there is longevity in the crypto market.
XRP is down 4.9% in the last 24 hours, and more losses should be expected. With these developments, bears will have a field day, and the resulting sell-off might see XRP lose $0.34.
Featured image: DepositPhotos © adriantoday