Ripple transferred 150 million XRP tokens priced at $66 million to a variety of crypto addresses, which could potentially affect the market.
Ripple, the XRP issuer, transferred approximately 150 million XRP from its reserves to various crypto accounts. Around $66 million is the estimated value of the tokens.
This transaction did not have a direct effect on the price of XRP. Nevertheless, the altcoin has been experiencing market pressure for an extended period.
Ripple released 1 billion XRP from the initial distribution at the beginning of the month on July 1. The company transferred 200 million XRP to its vault account from this substantial sum, while it retains the remaining 800 million.
Furthermore, it transferred an additional 100 million tokens from the “Ripple (35)” account, bringing the total to 300 million XRP.
The transaction was conducted from the vault account designated as “Ripple (1),” as is customary. Proceeding from this point, Ripple transferred 150 million XRP to a cryptocurrency wallet named rP4X2hTa. The XRP supply is inflating as a result of these transactions, as tokens that have never been in circulation come into circulation for the first time.
Currently, the rP4X2hTa account contains 202 million tokens. Consequently, the account rhWt2bhR, which is also a popular intermediate address, has already received 50 million.
Crypto exchanges frequently employ this address prior to the XRP tokens’ arrival. Subsequently, rhWt2bhR transferred 45.279 million XRP tokens to r4wf7e9W, another wallet.
Lastly, r4wf7e9W transferred 71.55 million XRP tokens, valued at approximately $31.5 million, to centralized exchanges like Bitstamp, BTC Markets, and Bitso, in addition to the tokens that were already in existence.
Around 234.38 million XRP tokens, valued at more than $103 million, are still present in all of the XRP purses mentioned in this article. Centralized exchanges may eventually incorporate these tokens.
In general, entities transfer their crypto from self-custody to centralized exchanges when they intend to sell them. Nevertheless, there are those who contend that Ripple must relocate the tokens in order to enhance liquidity.
“Another transfer between institutions or banks.” An X user wrote, “They require substantial quantities to maintain liquidity.”
Ripple’s token sales have a substantial influence on the price of XRP, as the spot market generates sales pressure. In the past, when Ripple decided to sell its tokens, XRP typically encountered local price declines.
Out of fourteen sales this year, only five had a positive effect on the price of XRP. Nevertheless, the price of XRP has declined by more than 30% year-to-date. It is currently trading at approximately $0.44.
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