The issuer of XRP, Ripple, sent approximately 150 million XRP from its reserves to different crypto wallets. The value of the tokens is about 66 million dollars. This transaction did not directly affect XRP’s price, but the altcoin has been under market pressure for a while. On July 1, Ripple released 1 billion XRP from the initial distribution. The company sent 200 million of this massive amount to its treasury account while retaining the remaining 800 million.
What Is Happening on the XRP Front?
During this process, the team sent an additional 100 million tokens from the wallet labeled Ripple (35), reaching a total of 300 million XRP. The transaction, as usual, was carried out through the wallet marked as Ripple (1). From there, Ripple sent 150 million XRP to a crypto wallet (rP4X2hTa). These types of transactions cause inflation in the XRP supply because tokens that were never in circulation before are entering circulation for the first time.
Currently, the rP4X2hTa account still holds 202 million tokens. Meanwhile, 50 million were transferred to the rhWt2bhR account, which is also a popular intermediary address. This address is typically used before XRP tokens enter crypto exchanges. Subsequently, rhWt2bhR sent 45.279 million XRP tokens to another wallet, r4wf7e9W.
Finally, r4wf7e9W sent approximately 71.55 million XRP tokens, worth about 31.5 million dollars, to centralized exchanges like Bitstamp, BTC Markets, and Bitso. All the XRP wallets mentioned here still hold over 103 million dollars worth of 234.38 million XRP tokens. These tokens may eventually be sent to centralized exchanges.
Details on the Matter
Generally, organizations move their assets from their custody to centralized exchanges if they plan to sell them. However, some believe Ripple needs to move the tokens for better liquidity. Given the selling pressure caused by the spot market, token sales by Ripple have a significant impact on the XRP price.
Historically, when Ripple decided to sell its tokens, local price drops occurred in most cases. This year, only five out of fourteen sales had a positive impact on the XRP price. Nevertheless, XRP’s price has dropped by over 30% so far this year. It is currently trading around 0.44 dollars.
