Ripple Continues to Unlock and Sell XRP Tokens
Ripple has unlocked 200 million XRP tokens from its escrow system, with 120 million already sold this month. This practice has been ongoing since 2017 when Ripple received the majority of XRP tokens created in 2012. After each monthly unlock, Ripple sells a portion of the tokens, contributing to the inflation of XRP’s supply. This inflation directly affects price projections for the digital asset and provides funding for Ripple’s operations.
Following Ripple’s On-Chain XRP Trails
Ripple’s spending crypto wallet address, ‘Ripple (1),’ made two payments of 60 million XRP each to ‘rP4X2…sKxv3.’ These addresses have been previously linked to Ripple, indicating a strong connection. However, unlike before, the transferred amounts were spread across multiple small transactions and moved back and forth between other addresses to make them harder to trace. The final destination of these transactions was an address that received a total of 54.075 million XRP before sending an unknown amount to exchanges like Bitstamp, Bitso, Independent Reserves, and BTC Markets.
The Impact on Price and Investor Considerations
The increased selling pressure from newly unlocked tokens can impact order books and the price of XRP. Investors should be aware of Ripple’s selling activities and take into account the supply inflation when considering their holdings. For instance, if XRP were to reach its all-time high market cap of $128.498 billion, it would trade at $2.39 per token, which is a significant decrease from its previous price of $3.84 in 2018.
Hot Take: Ripple’s Token Unlocking Strategy Raises Questions
Ripple’s consistent unlocking and selling of XRP tokens have raised concerns among investors and market observers. The company’s ability to influence the supply and price of XRP through these actions has led to debates about its impact on the broader cryptocurrency market. While Ripple’s actions are within its rights as a major XRP holder, the transparency and predictability of its token sales remain key considerations for stakeholders. As Ripple continues to unlock and sell XRP, it will be interesting to see how this strategy evolves and whether it will face further scrutiny.
By
By
By
By
By