As an experienced analyst, I have closely followed the developments in the crypto market and the XRP price in particular for quite some time. The recent on-chain data revealing Ripple’s token unlock and subsequent transfers has once again brought up concerns about potential price manipulation and dumping by the crypto firm.
Recently revealed on-chain information indicates that Ripple executed its routine escrow release for May. Given previous allegations against Ripple for price manipulation of XRP, this development has sparked apprehension among investors regarding potential impacts on the token’s value.
Ripple Unlocks 500 Million XRP Tokens
Five hundred million XRP tokens, held in escrow by Ripple, were made available on the blockchain on May 1st. This crypto company typically unlocks a billion tokens each month, but this time around it only released half that amount. The release of such a large quantity of tokens can potentially influence the market price of XRP negatively if a significant portion is sold.
An in-depth examination of the blockchain records indicates that Ripple transferred 300 million XRP from its accessible reserves to the account addressed as 2Not4co2op. Simultaneously, the company moved the remaining 200 million XRP tokens to a different wallet identified by the address 4vt5x1o91m. Since the latter 200 million XRP were not transferred to escrow, it is speculated that Ripple could intend to dispose of them in the future, although no such action has been taken yet.
An additional 500 million XRP tokens worth approximately $1.3 billion at current prices, were transferred from an unidentified wallet to Ripple’s account. Concurrently, these funds were swiftly moved into the escrow account, instilling confidence within the community as most of the recently obtained XRP by Ripple have been returned to the escrow.
Talks About Ripple Dumping On The Market Resurface
After the recent unlocking of tokens, the cryptocurrency world is once again debating Ripple’s perceived selling of XRP to the detriment of its holders. The debate over whether Ripple’s XRP sales impact the token’s value has been a recurring theme, with influential voices such as crypto YouTuber Jerry Hall alleging that Ripple deliberately suppresses XRP’s price through its sales.
contrary to some beliefs, the sales of XRP by Ripple’s Chief Technology Officer do not influence the price of the cryptocurrency token. Additionally, Ripple has stopped using programmatic sales, which eliminates their ability to impact prices on crypto exchanges.
In its recent court filing against the SEC, Ripple mentioned taking steps to ensure institutional sales complied with securities laws. This implies that Ripple may be conducting these sales privately, or over-the-counter (OTC), to minimize regulatory oversight.
Currently, the token’s value is approximately $0.5 on the market, representing a 2% increase within the past 24 hours based on information provided by CoinMarketCap.
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2024-05-02 18:04