There has been rising speculation among XRP community members that Ripple has been systematically dumping its whopping holdings on them. The recent movement of millions of XRP by Ripple has also been used to validate the speculation.
Whale Alert, an advanced blockchain tracker and analytics system, in a post on X, revealed that a Ripple-controlled wallet transferred 60 million XRP (roughly $34 million) to a wallet of unknown origin.
🚨 🚨 60,000,000 #XRP (34,088,291 USD) transferred from #Ripple to unknown wallethttps://t.co/zfHG8o0Bbo
— Whale Alert (@whale_alert) February 20, 2024
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Furthermore, Blockchain data verifies that the recipient wallet currently holds over 150 million XRP (approximately $85 million), this same address received 80 million XRP from Ripple on February 11th, subsequently dispersing some of those funds to other wallets.
Speculation and Clarification
The anonymity of the recipient wallet, coupled with the substantial transactions, has fueled speculation amongst some community members as these are all signs that Ripple might be selling a large portion of its XRP holdings on exchanges, potentially hurting the XRP price trend.
An X user @paolo14344 responding to the situation said “There they go again! The manipulative bots are out”
Ripple CTO’s Explanation
To settle issues similar to recent sales of XRP by Ripple, David Schwartz, the chief technology officer at Ripple, recently stated in a tweet that the payment firm has stopped the programmatic sales of XRP.
Recall that the firm’s core business model leverages XRP to facilitate cross-border value transfers for major institutions.
Interestingly, one of the wallets receiving funds from the aforementioned transaction exhibits characteristics consistent with such institutional involvement, displaying patterns of receiving and swiftly moving large volumes of XRP. This has led some to suggest that the movements could be associated with On-Demand Liquidity (ODL) transactions.
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— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: Ripple CTO States Clear Difference between Billions of XRP in Escrow and Flare (FLR) Airdrop
Market Impact
Despite the concerns, market analysts remain largely unfazed by the recent whale transactions. The price of XRP has been shedding gains over the last 24 hours with about a 3% loss, amid Bitcoin’s struggles to maintain its position above $50,000. At the time of press, XRP trades at $0.54.
While the true purpose behind the transfer remains unknown, Ripple’s established role in facilitating institutional XRP usage offers a potential explanation beyond simple “dumping” concerns. Continued observation of market behavior and any official statements from Ripple will be crucial in providing further clarity on the matter.
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