Spike in XRP Liquidations
The price of XRP experienced a dip, leading to a significant increase in liquidations of leveraged XRP positions. Over $4 million worth of leveraged positions were liquidated, with the majority being long positions amounting to around $3.8 million in losses.
According to Coinglass data, the past 24 hours saw a total of $150 million in liquidations for all leveraged crypto positions. Long positions accounted for $113 million in losses, while short positions amounted to approximately $36 million.
Liquidations occur in derivatives markets when traders’ positions are forcibly closed due to insufficient funds to cover losses. This happens when market movements go against the trader’s position, depleting their initial margin or collateral.
Ripple co-founder Chris Larsen revealed that there had been “unauthorized access” to some of his personal accounts following a potential hack incident involving Ripple. Crypto investigator ZachXBT reported that it appeared Ripple was hacked for approximately 213 million XRP, equivalent to $112.5 million.
As a result, XRP experienced a decline of 4.4% within 24 hours, dropping to $0.50 at 10:30 a.m. ET.
Bitcoin Price Movement
In addition to XRP’s dip, Bitcoin also saw a decrease in price by 1.6% over the past day. It was trading at $42,916 at 10:30 a.m. ET.
The unauthorized access and potential hack incident affecting Ripple and XRP have led to significant consequences for both the cryptocurrency and its co-founder, Chris Larsen. This incident has resulted in a decline in XRP’s price and an increase in liquidations of leveraged positions.
As the investigation into the unauthorized access continues, it remains to be seen how Ripple and XRP will recover from this setback and regain market confidence. The incident serves as a reminder of the vulnerabilities within the cryptocurrency industry and the importance of robust security measures to protect personal accounts and digital assets.
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