XRP Twitter Engagements Shrink 16% in Q1-2020

XRP Twitter Engagements Down 16% in Q1-20

Online interaction with XRP on Twitter declined in the first quarter of 2020, although Ripple was compelled to liquidate a lot of its assets in order to maintain its cash flow, according to a quarterly survey.

The report, prepared by investing platform eToro in collaboration with finance management firm The Tie, showed that the number of users debating XRP on Twitter dropped by 16 percent in the first quarter of 2020.

In addition, the number of users in the “XRP Army”, which refers to the cryptocurrency supporters, has dropped by 82 percent since January 2018.

XRP losing supporters?

It is not the first challenge XRP has faced with online interaction. On April 15, a Twitter user published a list of Telegram groups, indicating that more than 63 percent of Ripple members have left since June 2018.

Although online engagement should not be correlated with the cryptocurrency price, The Tie’s analysis showed a relationship between XRP price and the number of Twitter users during Q1-20.

Over $263M worth of XRP liquidated

XRP was overtaken in daily volume by Chainlink (LINK) token during the same period, and came close to losing its third ranking in the Top 10 to Tether (USDT).

The study stated that the company “relied on XRP liquidations to stay cash-flow positive” in 2019:

“While Ripple liquidated only $13M worth of its XRP holdings in Q4 2019 (the least in three years), it sold over $250M worth in Q3 of last year. It is not yet known how much XRP Ripple sold in Q1 2020.”

The liquidation issue may be due to a class-action lawsuit which the company is facing in New York. CEO Brad Garlinghouse is suspected of driving the token towards prospective investors while cashing out his assets in secrecy.

XRP on the verge of impressive comeback

From the peak hit last February, XRP has plunged nearly 50 percent, hurt by the severe pressures that weighed on the crypto market in general.

Several crypto analysts, however, expected the coin to be on the verge of an impressive comeback.

Analyst LomahCrypto said he is currently drawing a scenario in which the cryptocurrency would rise by by almost 30 percent over the next two months, indicating that the $0.24 level would be a long-term possible target.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.