Ripple, the company behind the XRP cryptocurrency, recently sold millions of XRP tokens from its holdings. This is a significant change in strategy, as Ripple had previously restricted XRP sales amid ongoing legal issues.
XRP transactions are raising eyebrows
Blockchain tracker Whale Alert recently reported two major transactions involving XRP. One transaction consisted of 29.7 million XRP, while the other consisted of a whopping 425.3 million XRP.
In a notable transaction, Ripple transferred approximately 30 million XRP to Bitstamp. What makes this move even more intriguing is that Ripple has chosen to sell these XRP tokens for around $15 million.
Confirmation from Bithomp, a data provider focused on XRP, later confirmed that Ripple Labs initiated this transfer with the intention of selling it for around $15 million.
Mystery weighs heavily
However, the second transaction, involving over 425 million XRP, moved from digital exchange Bitvavo to an unidentified wallet, raising questions within the crypto community.
What is less clear, however, is whether this sale was made at a profit or whether Ripple absorbed a loss.
In August, Whale Alert documented several XRP transactions of similar size, some of which came from Bitvavo. Despite a slight 1.44% drop in the price of XRP after a previous 4.73% increase, Ripple executed these trades successfully.
Read More: Ripple’s Support Fails To Raise XRP Price – Warn Experts
Ripple’s smart strategy
To maintain market liquidity and stability, Ripple has carefully managed its XRP holdings. They have released one billion XRP from escrow every month since 2018.
However, what sets Ripple apart is its recent decision to do so re-lock about 80% of the XRP previously returned to custody. This means that on average only about 200 million XRP is injected into the market every month.
Ripple’s strategic moves have received a lot of attention. Crypto enthusiasts and market observers are carefully analyzing the potential impact of these actions on both XRP’s value and overall market dynamics.
With XRP’s price swings and Ripple’s evolving strategies, the crypto world remains as intriguing and unpredictable as ever.
Read more: Top reasons why XRP is about to become much bigger than everyone thinks