Ripple’s Surprise XRP Sell-off
Ripple recently sold 120 million out of the reserved 200 million XRP for its treasury, and on February 11, it surprised investors by selling an additional 100 million XRP from a dormant wallet address that had been inactive for almost two years. This account, known as ‘Ripple (52)’, sent the tokens to Ripple’s treasury account.
Dormant ‘Ripple (52)’ Funded by a 2 Billion XRP Account
The ‘Ripple (52)’ account was activated in August 2022 and received 500 million XRP from another Ripple account. After spending 75 million in August 2022, the dormant address remained inactive until February 11, 2024. Interestingly, it still has 325 million XRP available in its liquid balance. The funding account, ‘Ripple (29)’, is worth 1.96 billion XRP.
Ripple’s Previous Sell-offs
Each month, Ripple puts new tokens into circulation by unlocking 1 billion XRP, keeping 200 million for sale, and relocking the remaining 800 million. However, in the past two months, Ripple has been liquidating more of its reserves than the monthly unlocked amount. This could indicate a new pattern of larger token dumps in the future. Despite these sell-offs, Ripple still holds over 5 billion liquid XRP in multiple accounts.
Impact on XRP Investors
These sell-offs directly affect the price of XRP in the market and pose a risk to investors. With the potential for increased selling activity in the coming months, traders should consider this when evaluating the risks of trading this cryptocurrency.
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