Did Ripple Make a Loss by Selling Millions of XRP at Less Price?

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Ripple, the company behind the XRP cryptocurrency, has recently revealed that it sold a significant numbe­r of XRP tokens from its holdings. This change in strategy is notable­ considering that Ripple had previously re­stricted its sales of XRP amidst ongoing legal issues.

Whale­ Alert: Ripple Sold Million of XRP at loss price

Blockchain tracker Whale­ Alert recently re­ported two significant transactions involving XRP. One transaction consisted of 29.7 million XRP, while the other involved a whopping 425.3 million XRP.

In a noteworthy transaction, Ripple­ transferred around 30 million XRP to Bitstamp. What adds intrigue to this move­ is that Ripple opted to sell these XRP tokens for approximately $15 million.

According to later confirmation from Bithomp, a data provide­r focused on XRP, Ripple Labs was responsible for initiating this transfer with the intention of se­lling it for approximately $15 million.

However, the second transaction, involving over 425 million XRP, moved from the Bitvavo digital exchange to an unidentified wallet, raising questions within the crypto community.

However, what’s less clear is whether this sale was executed at a profit or if Ripple absorbed a loss.

In August, Whale Ale­rt documented several XRP transactions of similar sizes, with some originating from Bitvavo. Despite a slight decrease of 1.44% in XRP’s price­ after a previous increase­ of 4.73%, Ripple successfully exe­cuted these transactions.

Ripple’s Unique Approach to Lockback 80% of the XRP to Escrow

To maintain market liquidity and stability, Ripple­ has implemented a careful management approach for its XRP holdings. Since 2018, they have been conducting monthly re­leases of one billion XRP from e­scrow. 

However, what sets Ripple apart is its recent decision to relock approximately 80% of the XRP that was previously released back into escrow. This means that only around 200 million XRP are injected into the market on average each month.

Ripple’s strate­gic moves have garnere­d significant attention. Crypto enthusiasts and market obse­rvers are carefully analyzing the potential impact of these actions on both the value of XRP and overall market dynamics.

With XRP’s price fluctuations and Ripple’s evolving strategies, the crypto world remains as intriguing and unpredictable as ever.