Saturday, January 23, 2021

Grayscale Investments Disclaims Dumping Huge Amounts of XRP and XLM

Contrary to the widespread report that claimed that the world’s largest crypto-asset manager, Grayscale, has dumped a significant amount of its positions in XRP and XLM, a spokesperson of the crypto investment firm has come out for clarification.

Based on data from a cryptocurrency futures trading platform, Bybt, Grayscale Investments Liquidated massive amounts of Ripple’s XRP and Stellar Lumens (XLM) earlier this week.

However, the report has been disclaimed by a Grayscale spokesperson who recently spoke with Cointelegraph.

Read Also: A New Pro-Crypto SEC Chairman Appointed. Would This Favor Ripple and XRP?

Details of the Inaccurate Bybt Data

On 30th December 2020, Bybt released data that suggested that Grayscale Investments drastically reduced its exposure to XRP by relatively 9.19 million units. The data also says that the digital assets manager cut its XLM holdings by over 9.74 million units. Gong by the data, this significant change played out in the space of 24 hours.

For clarification of this misinformation, a Grayscale spokesperson who spoke with Cointelegraph said:

“None of the Grayscale investment products operate a redemption program. The net holdings of our investment products only change as a result of inflows from the private placement, price of the underlying assets and accrued management fee.”

“Statements about large sales of underlying assets by any of our investment products are false and inaccurate. Any perceived large decrease in the USD value of Grayscale XRP Trust would have been a result of a decrease in the USD price of XRP.”

Despite the clarification, Bybt data still shows a large outflow of XRP and XLM from Grayscale Investments over the past seven days.

Read Also: Ripple CTO David Schwartz on Why Giving Away XRP Is Really Hard

What Data Reported By Grayscale Say

Considering the data released by Grayscale on 22nd December 2020 and its recent data reported, it can be simply deduced that what caused the huge shift was the major price dump experienced by XRP over the last seven days.

On 22nd December, Grayscale reported $18.6 million worth of XRP under its management, while its latest report says it currently holds $8.4 million worth of XRP. Mind you, XRP has lost over 50% of its market value since the announcement of the lawsuit filed by the United States SEC against Ripple.


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Tobi Loba
Tobi-Loba is a creative and an award-winning writer with over 5 million readers from all over the world. She has B.A in English and Literature from a reputable University and currently studying for her M.A in the same field. She recently became a contributor at Herald Sheets in order to satisfy her thirst in reporting crypto and blockchain occurrences, the interest she built over the years.

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