Ripple Reserves 200 Million XRP for Treasury
Ripple has set aside 200 million XRP, equivalent to $100 million, for its treasury after unlocking 1 billion tokens in February. Onchain data reveals that the company began selling off over half of this month’s supply inflation. The sell-off followed a familiar pattern but started with a transaction worth $60 million in 120 million XRP tokens, the largest initial monthly payment since February 2023. The tokens were sent to the known Ripple treasury account, ‘rP4X2…sKxv3,’ which has been used for previous sell-offs.
Transaction Details
‘rP4X2…sKxv3’ received the payment from Ripple and subsequently transacted with three other accounts. It sent 3 million XRP to ‘rBQhw…vZkN5’ and 17 million XRP to ‘rhWt2…E32hk.’ Another account, ‘rJqiM…La8nE,’ received 1 million XRP. On the same day, ‘rhWt2…E32hk’ received an additional 9.55 million XRP, bringing the total to 26.55 million XRP. The original receiver still holds 89.45 million XRP, valued at around $45 million.
Impact on Market Price
These tokens could potentially create selling pressure in the market at any time, which may impact the price of XRP. It is crucial to note that Ripple strategically liquidates its holdings during opportune moments. These sell-offs significantly affect the token’s 24-hour trading volume and can influence short-term price movements.
Hot Take: Ripple’s Sell-Off and Recent Hack
Ripple’s decision to sell off a significant amount of XRP and the recent hack that resulted in Co-founder Chris Larsen losing $112 million worth of tokens have both affected the market. The expectation of a sell-off due to the hack had a similar value to this month’s reserves, leading to a negative reaction in XRP’s price. Investors should closely monitor Ripple’s treasury actions as they can have an impact on the overall XRP market.
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