In the third quarter of 2020, Ripple (XRP) paid MoneyGram almost $ 9 million as “market development fees”.
We can see this in the rofficial report MoneyGram’s quarterly report, which clearly states that the company received $ 8.9 million from Ripple (XRP) in the form of market development fees, plus $ 0.4 million to cover transaction and marketing expenses.
THE partnership between the two companies has existed since the middle of last year and, since then, Ripple has always paid money development fees to MoneyGram.
However, the report does not specify whether XRP played a role in these payments.
For example, in the second quarter of the year, Ripple officially reported that it sold XRP for a total of more than $ 32 million, but the figures for the third quarter have not yet been released.
Does Ripple sell its cryptocurrency to finance other projects?
In addition, there is no certainty that the proceeds from the sale of XRP will be used to finance MoneyGram in this way.
In fact, the price of XRP on the market in the third quarter of 2020 increased, while in the second quarter it remained relatively stable.
On April 1, at the beginning of the second quarter, the price was just over $ 0.17, while on June 30 it was just a little higher.
As of September 30, at the end of the third quarter, it had risen to $ 0.24, while it is now just over $ 0.23.
Therefore, no sale of XRP on the market by Ripple reduced its value in the third quarter, with the current price exceeding up to $ 0.19 at the beginning of the year.
Certainly the increase in the XRP value of about 25% since the beginning of the year is less than the increase in the value of the two main cryptocurrencies, Bitcoin and Ethereum, since for example, BTC has registered a + 88% so far while ETH has registered incredible + 190%.
Therefore, it is possible that, although it did not cause the price of XRP to drop, Ripple’s sales may have stopped the cryptocurrency’s value growth.
In fact, it is likely that these sales will be used by the company to finance business development activities, such as the collaboration with MoneyGram.