In its announcement, Ripple cites recent reports about fake cryptocurrency trading volumes, such as the one recently released by United States-based asset manager Bitwise, which claims that 95% of bitcoin (BTC) trading volume is fake. However, a new report by Bitwise also claims that fake trading volumes by crypto exchanges do not impact bitcoin’s price.
The firm promises to take steps to address these concerns by collaborating with partners in the space, evaluating its approach to XRP data reporting and “taking a more conservative approach to XRP sales this quarter.” Ripple notes that, as a consequence, XRP’s sales in the second quarter of 2019 will be considerably lower than in the first quarter.
The target of 20 basis points will also likely be cut to under ten, less than half of what it was before. On May 16, 2019, Coin Metrics released a report detailing discrepancies in Ripple’s escrow reporting system, describing inconsistencies that allegedly required explanation.
In line with accuracy in reporting data, crypto market cap tracker CoinMarketCap (CMC) announced a new alliance called the Data Accountability & Transparency Alliance at the beginning of May. CMC also noted at the time that it would remove exchanges from its calculations if they fail to provide mandatory data by June.