Just about 0 o'clock on 07/07/2017 suddenly Ripple jumped through Ethereum and occupied No. 2 on the coinmarketcap. Circulation Supply of coilmarketcap ripple has increased nearly threefold, from $ 38 billion to $ 99 billion.
What happened?
The reason the ripple suddenly jumped over Ethereum is because the amount of coin flowing from this currency suddenly jumped from $ 38 billion to $ 99 billion, and because of market capitalization, the capitalization of the ripple increased. Tripled, over Ethereum.
A lot of people are scared to think that the Ripple sells more than 60 billion dong of coin and thus drags down the dong as the supply surges.
However, after a while (about 45 minutes) the ripple has returned to the old position. Copper flow of the ripple has also returned to 38 billion.
Explained
Why does this happen, is the coinmarketcap faulty or ripple deliberately does this to polish the name?
In fact, since May, Ripple has announced it will spend $ 55 billion to "ensure total XRP supply." That notification details https://ripple.com/insights/ripple-to-place-55-billion-xrp-in-escrow-to-ensure-certainty-into-total-xrp-supply/
We all know Ripple still holds more than 60 billion XRP, and only marketed up to this time 38 billion (the original number of coinmarketcap). But, according to Ripple, keeping them 60 billion XRP will cause "uncertainty" for the user, who is also afraid that one day the ripple will sell that amount to the market by dragging down the XRP copper price. Down (probably many people holding the ripple was very afraid of this)
In order to resolve the "uncertainty", Ripple decided to keep only ~ 6 billion dong, and deposit XRP 55 billion. Ripple always use Escrow function in XRP Ledger to do this.
The problem is that the escalator is simply a ripple and Escrow forgets it. In fact, the escrow process is as follows:
Ripple will use Escrow to create 55 contracts with 1 billion XRP (55 billion total deposit) and these contracts will expire on the first day of the month from month 0 to month 54. When each contract Expired, the amount of XRP will return to the control of the ripple and can be ripple used, such as encouraging market makers or selling to investors.
After that, the ripple will send back any unused XRP to Escrow at the end of the month. For example, if 500 million XRP is not used at the end of month 1, then 500 million will be put into escrow account is set to expire the 55th month. Selling about XRP 300 million per month in the past 18 months (as of May 2017)
So what was the problem? That could be 55 billion in Escrow has come back to Ripple (expiry date in the beginning of the month or a functional testing process), so the total amount of copper is "distributed" on the Ripple's official website has increased to $ 99 billion ($ 38 billion in circulation + $ 55 billion in Escrow + over 6 billion ripples in stock), and because coinmarketcap reads data from the "TOTAL XRP DISTRIBUTED" value (either on the website or from another address Ripple provided) so the XRP traffic on coinmarketcap jumped to 99 billion and led to the problem mentioned. On the Ripple website itself, the number 55 billion is "to be placed on deposit" rather than "has been deposited" so the fact that the number is in the hands of anyone is unclear. Deposits will be commenced at the end of 2017 so they are most likely to hold the same amount,
After a while, Ripple adjusted the data on the website, the TOTAL XRP DISTRIBUTED has returned to $ 38 billion, and information on coinmarketcap is back to normal.
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Hi, great post! Me and @monogrande and probably alot of others were wondering what happened yesterday with the ripple market cap! We first were thinking it was a glitch on coinmarketcap, but this post explains a lot! Thanks for sharing! I've learned some new things about Ripple 👍
Great news. Thank you for posting the report!
I just looked and the price has dropped.
and what do you think ripple will rise or not?