The San Francisco-based blockchain company Ripple Labs has awakened the attention of many within the crypto space through its recent activities. The firm engaged in what appears to be a sell-off of millions of XRP tokens as it transferred the coins from its associated account.
The transactions occurred as XRP’s value moved upward, suggesting a potential asset dumping.
Ripple Completes Two Huge XRP Movements Within 24 Hours
According to data from the crypto on-chain tracking platform for massive transactions, Whale Alert, Ripple made two transactions within this week. The first transaction involved the transfer of $46.34 million XRP tokens.
🚨 46,340,000 #XRP (24,746,250 USD) transferred from #Ripple to unknown wallethttps://t.co/5Tr5MjBt2m
— Whale Alert (@whale_alert) January 30, 2024
The transaction took place on January 30 at 00:15 UTC. The coins were worth over $24.74 million, in line with market prices. Moreover, Ripple moved the assets between two wallets associated with it. The activity log of the Bithumb Explorer indicated Ripple often uses the sending account in its transactions.
Also, the receiving wallet is under the control of the blockchain firm, dispersing any possible fears over the transaction. The second transaction involved the transfer of 27.1 million XRP coins, worth about $14.57 million. The funds originated from an account that Ripple created on January 2023.
Moreover, the wallet has been active and now holds about 20.18 million XRP after the transfer. The receiver’s account for the second transfer is on the Bitstamp crypto exchange, a different flow from what is noted in the former transaction.
🚨 27,100,000 #XRP (14,572,197 USD) transferred from unknown wallet to #Bitstamphttps://t.co/j9jjY43sxE
— Whale Alert (@whale_alert) January 29, 2024
Notably, Ripple initiated the transactions following a slight positive change in XRP value. The token recorded a 1.7% increase over the past 24 hours, taking the price to around $0.5339.
Are there Implications For The Transfers On the XRP Market?
Ripple’s massive fund transfers seem to be generating some concerns within the crypto community. Fund movements to crypto exchanges and trading platforms are common, as they could be for potential liquidation. In the case of Ripple, such a trend is quite familiar.
For instance, Ripple transferred 27.7 million XRP coins to a wallet on Bitstamp on January 28. The tokens were worth more than $14.48 million.
🚨 27,700,000 #XRP (14,482,315 USD) transferred from unknown wallet to #Bitstamphttps://t.co/JmHPN5e6CS
— Whale Alert (@whale_alert) January 28, 2024
Ripple has been using Bitstamp as one of its major exchanges to liquidate its holdings. However, it’s still unknown if such liquidations are coming. Moreover, the massive flow of XRP could also trigger fears among holders and traders.
Also, the blockchain company will soon release more XRP coins from its escrow, which could dilute its value and impact the token’s outlook.
For now, there’s a mixed reaction over the transfers. However, some believed that Ripple was dumping the coins. A growing sentiment of sell-off will affect the XRP’s value and expected growth within its community.
As of 06:40 AM EST on January 30, XRP trades at $0.5333, reflecting a surge of 0.94% over the past 24 hours.
Its daily trade volume increased by 33.12%, taking the value to $908.24 million. Also, the market cap sits at $29 billion. There’s no certainty on how XRP prices will move due to the massive transfer of tokens to exchange.
But it finally becomes a sell-off, and the token price will likely drop.
