A couple of hours ago, crypto whale tracker Whale Alert identified a significant XRP transaction involving a Ripple wallet. The data shows a movement of 100 million XRP, valued at approximately $52.81 million, to an unknown recipient address.
Internal Transfer or Market Movement?
While Whale Alert doesn’t disclose the recipient’s identity, an analysis of the blockchain suggests the wallet might be another Ripple-controlled address. This address, activated in October 2021, currently holds over 145 million XRP. Interestingly, shortly after receiving the 100 million XRP, it transferred 50 million XRP to two separate unknown wallets.
This recent transaction follows another 100 million XRP transfer from Ripple to the same address on April 14, 2024. In total, Ripple has moved 200 million XRP to this address this month alone.
Read Also: XRP Whale Behind the Movement of Millions of XRP from Binance Revealed
Origin of the Transferred XRP
The 200 million XRP originated from a Ripple wallet that regularly receives funds from the company’s escrow accounts. On March 1, 2024, this specific wallet received 500 million XRP via an “escrow execution” transaction. Since then, Ripple has moved nearly all the funds from this wallet.
Understanding Ripple’s Escrow System
For transparency, Ripple typically releases 1 billion tokens from its escrow accounts on the first day of each month. To manage potential market volatility after these releases, Ripple places 800 million XRP back into escrow, while the remaining 200 million XRP is used to cover operational expenses.
From February to April 2024, Ripple’s escrow system released less than the usual 1 billion XRP. On April 1st, only 500 million XRP was unlocked. Nonetheless, Ripple returned the standard 800 million XRP to escrow the same day. But the remaining 500 million XRP was later released on April 12.
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Potential Correlation Between Transfers and Escrow Releases
It’s worth noting that the first 100 million XRP transfer mentioned earlier occurred two days after the second tranche of XRP was released from escrow in April. Similarly, the most recent 100 million XRP movement identified by Whale Alert happened ten days later.
The recent transfers and the observed discrepancies in escrow releases raise questions about Ripple’s current XRP management strategy. According to the internal transfer theory, combining accounts could be possible.
However, there is some uncertainty caused by the movement of XRP to unknown wallets after it has reached the intermediary address. Until Ripple provides more details, market observers will continue speculating about the reason behind these incessant transactions.
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