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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.
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