untitled design

Ripple Moved 150 Million XRP Tokens

The team behind the XRP token, fintech startup Ripple, has moved around 150 million XRP from its reserves to various crypto wallets.

The total value of the transferred XRP tokens is approximately $66 million. Although the transaction did not have a direct impact on the price of XRP, the altcoin has been under pressure for some time.

Massive XRP Movement

At the very beginning of this month, on July 1, the Ripple team issued 1 billion XRP from the initial token supply. The developers then distributed the funds as follows:

  • 200 million tokens were transferred to their storage account. Later, another 100 million XRP from “Ripple (35)” was added here – in total, there were 300 million.
  • 800 million tokens remained in circulation.

The team withdrew all funds from another storage account known as “Ripple (1)”. From this address, 150 million XRP were transferred to a crypto wallet with the address rP4X2hTaThere are currently 202 million tokens remaining in this account.

The next step is that the team transferred 50 million XRP from the previous address to the account rhWt2bhRwhich is also used as an intermediate address. In turn, this wallet sent 45.279 million XRP tokens to another — r4wf7e9W.

And finally, the last wallet on our list transferred 71.55 million tokens to centralized exchanges (CEX) — Bitstamp, BTC Markets, and Bitso. The total value of all transferred assets exceeded $30 million.

Typically, market players transfer crypto assets from personal storage to exchanges if they plan to sell them. However, some users believe that in the case of Ripple, a series of such large transfers served only one purpose – to increase the liquidity of XRP.

“Just another transfer from an institution/bank. They need large volumes for liquidity,” wrote user X (formerly Twitter).

All the wallets mentioned here still hold around 234.38 million XRP tokens, worth over $103 million. These tokens may eventually end up on centralized exchanges as well.

How XRP Reacts

Transactions like the ones described above naturally cause inflation of the XRP supply. The fact is that tokens that have not previously been in circulation are entering the market for the first time.

Ripple token sales have a significant impact on the price of XRP given the selling pressure on the spot market. Historically, the price of XRP has most often fallen when Ripple has decided to sell its tokens.

Only five out of fourteen sales have had a positive impact on the XRP price this year. However, the XRP price is down more than 30% year-to-date. At the time of writing, the asset is trading at $0.43.

Stay up to date! Subscribe to World Stock Market on Telegram.

Source: Cryptocurrency

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights


Most popular