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Ripple Releases 150 Million XRP Tokens, Sparking Potential Market Movements
Ripple, the issuer of XRP, sent around 150 million XRP from its reserves to different crypto wallets. The tokens are worth around $66 million.
This transaction didn’t directly impact the price of XRP. However, the altcoin has been under market pressure for some time.
Release and Redistribution of XRP Tokens
On July 1, at the beginning of the month, Ripple released 1 billion XRP from the initial distribution. Of this huge amount, the company sent 200 million XRP to its vault account while it retains the remaining 800 million.
In addition, it sent another 100 million tokens from the “Ripple (35),” bringing the total to 300 million XRP.
As usual, the transaction took place from the vault account marked as “Ripple (1).” From here, Ripple sent 150 million XRP to a crypto wallet—rP4X2hTa. Such transactions cause inflation of the XRP supply because tokens that have never been in circulation before enter circulation for the first time.
Read more: Ripple (XRP) Price Prediction 2024/2025/2030
At present, 202 million tokens are still in the rP4X2hTa account. In turn, 50 million have already been transferred to the account rhWt2bhR, which is also a popular intermediate address.
This address is often used before the XRP tokens hit crypto exchanges. Later, rhWt2bhR sent 45.279 million XRP tokens to another wallet – r4wf7e9W.
Finally, along with previously existing tokens, r4wf7e9W sent 71.55 million XRP tokens, worth around $31.5 million, to centralized exchanges such as Bitstamp, BTC Markets, and Bitso.
All the XRP wallets mentioned here still hold around 234.38 million XRP tokens worth over $103 million. These tokens might eventually hit centralized exchanges.
Generally, entities move their crypto from self-custody to centralized exchanges if they plan to sell them. However, some believe that Ripple needs to move the tokens for better liquidity.
“Just another institution/bank transfer. They need large amounts for liquidity,” an X user wrote.
The sale of tokens by Ripple has a significant impact on the price of XRP, taking into account the sales pressure that the spot market causes. Historically, XRP experienced local price drops in most cases when Ripple decided to sell its tokens.
Read more: How To Buy XRP and Everything You Need To Know
This year, only five out of fourteen sales had a positive impact on the price of XRP. That being said, the price of XRP is down by over 30% year-to-date. It is currently trading around $0.44.
The post Ripple Releases 150 Million XRP Tokens, Sparking Potential Market Movements appeared first on BeInCrypto.