Following the Track of the 60 Million XRP
Ripple recently moved 60 million XRP tokens, worth $30 million, from the 200 million tokens that were released this month. These tokens went through five different accounts before being deposited in small batches to four exchanges, indicating that they were sold. One of these exchanges, Bitstamp, experienced a significant drop in the XRP/USD pair price from $0.50 to $0.458 (-8.5%) at the same time.
After locking 800 million XRP tokens in new escrows on October 1, Ripple kept 200 million tokens in the “Ripple (1)” account for circulation through XRP’s supply inflation mechanism. On October 9, 60 million XRP were transferred from “Ripple (1)” to an unknown address, then forwarded to other addresses. Some smaller shares have not been moved yet.
The majority of the tokens eventually ended up in four centralized exchange known addresses and one unknown address, similar to a previous occurrence in September.
Does Ripple Moving Unlocked Tokens Impact the XRP Price?
While it is difficult to determine the exact impact of Ripple moving freshly unlocked tokens on the XRP price, it is clear that such actions can create selling pressures that may liquidate book orders if they involve a significant amount of assets relative to trading volume. Bitstamp alone received 33.15 million XRP tokens, resulting in an 8.5% price drop.
The current price of XRP is $0.49 per token, but Ripple still holds 140 million tokens worth $70 million that could be sold in the coming days. This could potentially lead to further localized selling pressures similar to what was observed recently.
Hot Take: The Potential Impact of Ripple’s Token Movements on XRP Price
When Ripple moves its unlocked tokens, it can have a noticeable effect on the price of XRP. Selling large amounts of tokens can put pressure on the market and lead to price drops. The recent movement of 60 million XRP tokens resulted in an 8.5% decrease in the XRP/USD pair price on Bitstamp. While it is uncertain how much Ripple’s actions directly influence the price, it is clear that they can create selling pressures that affect trading volume. With more tokens potentially being sold in the future, it remains to be seen how this will impact the price of XRP.
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