On-chain data has revealed ongoing transfers of millions of XRP from Ripple to the crypto exchange Bitstamp, totaling over 120 million tokens this month. This has sparked concerns among market participants who fear a potential selloff orchestrated by the San Francisco-based technology company.
A Web of XRP Transfers
The series of transfers began shortly after Ripple unlocked 1 billion XRP from escrow for October. On October 1, the company released 100 million and 400 million XRP to one of its wallets, followed by releasing 500 million XRP to another wallet, resulting in a total of 1 billion tokens.
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Although the wallet that initially received 100 million and 400 million tokens returned all the tokens to escrow, the second address that received 500 million XRP moved 300 million tokens to escrow and retained 200 million tokens. On the same day, it transferred the remaining 200 million XRP to another Ripple address.
The recipient of the 200 million XRP held onto the tokens until October 9, when it transferred 60 million XRP to another Ripple wallet. Following subsequent transfers, the tokens ultimately ended up in a central address controlled by Ripple, which was then used to transfer most of the assets to Bitstamp.
Even before receiving the tokens released from escrow this month, the central Ripple-controlled address already held millions of XRP. One of the earliest transfers observed involved sending 47.5 million XRP to Bitstamp’s address on October 2.
Additional transfers were made from the Ripple address to Bitstamp’s address, including 42.5 million tokens on October 9 and 23 million XRP two days later.
Interestingly, the same Bitstamp address had already received a separate batch of XRP tokens from another Ripple-affiliated address, resulting in an influx of 7.844 million XRP on October 5.
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Concerns Raised
The cumulative transfers to the Bitstamp address in recent days have amounted to 120.84 million XRP ($58.3 million) since October 2. While market participants remain concerned about a potential selloff, it is important to note that Ripple’s token movements are not unprecedented.
Ripple has consistently followed similar patterns of token movements over the past few years, mainly involving XRP released from escrow. However, the company sells them off strategically to minimize their impact on the market.
Ripple does not sell off all of the XRP tokens released each month, instead locking back approximately 800 million XRP monthly. According to attorney Bill Morgan, this strategy stabilizes the price of XRP.
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