Ripple Transfers 250 Million XRP Amid Price Drop

Summary:

Two days ago, Whale Alert reported a significant transfer of 250 million XRP (valued at $122.5 million) from a Ripple-affiliated wallet to an unknown address. This large transaction coincided with a decline in XRP’s price, which fell below $0.5 after briefly surpassing it. Currently, XRP is priced at $0.4848, marking a 1.12% decline over the past 24 hours amidst a broader market downturn affecting various digital assets.
Further investigation revealed that the recipient address, identified by Bithomp, was activated by Ripple in October 2023 and has been active throughout June, receiving a total of 400 million XRP from Ripple this month. The recipient wallet currently holds a balance of 270.95 million XRP, while the sending Ripple wallet has a remaining balance of 275.99 XRP.
This transaction has spurred speculation about potential selloffs by Ripple. Historically, Ripple releases 1 billion XRP from escrow monthly, re-locking 800 million and using the remaining 200 million for operational expenses. Some community members believe this strategy suppresses XRP’s price. Ripple’s CTO, David Schwartz, acknowledged the challenges of reducing Ripple’s substantial XRP holdings, stating that selling XRP is the primary method for achieving this goal.
The long-term health of the XRP ecosystem will likely depend on balancing Ripple’s business needs with the expectations of XRP holders.
Disclaimer: This summary is for informational purposes and should not be considered financial advice.