Ripple Sells Half of Its Reserved XRP Tokens
Ripple has sold 100 million XRP tokens from its treasury, which accounts for half of the 200 million tokens reserved. This move comes after the unlock of 1 billion tokens in January. On January 16, the company used 80 million XRP from the second half of the reserved tokens, potentially creating selling pressure on exchanges.
Interestingly, Ripple sent the 80 million XRP, valued at $45.6 million, to the same account that previously received the company’s sell-offs. The treasury account still holds a remaining balance of more than $26.4 million in 46.34 million XRP.
If this sell-off follows a similar pattern to the previous one on January 9, the payment could be routed through two intermediate addresses before reaching centralized exchange accounts.
XRP Price Analysis and Impact
The recent sell-off of 80 million XRP by Ripple surpasses the token’s 24-hour exchange volume of 1.55 million, according to CoinMarketCap. This increased liquidity can potentially exert downward pressure on the token’s price.
Following January’s first sale, XRP experienced a price loss of 5.35% from January 8 to January 10.
Currently trading at $0.57 per token, XRP faces uncertainties due to the SEC’s lawsuit against Ripple. The U.S. agency has filed a motion related to the company’s XRP sales.
Large-scale disposals like this can raise concerns among investors and holders as it may lead to a decrease in value if demand fails to keep up with increased supply. Additionally, it could signal a lack of confidence in the token’s short-term performance and trigger further selling by holders seeking to minimize their losses.
Hot Take: Ripple’s Ongoing Token Sell-Off Raises Concerns
Ripple’s ongoing sell-off of its XRP tokens has raised concerns among investors and holders. With the recent sale of 80 million tokens, accounting for half of the reserved amount, there is an increased supply in the market. This can potentially lead to a decrease in value if demand does not match the supply.
Furthermore, the sell-off may indicate a lack of confidence in XRP’s short-term performance, which can generate skepticism among investors. This could trigger a sell-response from other holders looking to mitigate their losses.
As Ripple continues to unlock and sell its reserved tokens, it remains to be seen how this will impact the token’s price and the overall market sentiment towards XRP.
By
By
By
By
By