A whale address associated with American blockchain payments firm Ripple Labs Inc. has moved $60,000,000 ($60 million) XRP, sparking selloff concerns.
As reported by Whale Alert, the massive XRP transfer has a valuation of $42,831,410. This implies the firm moved the asset at an average price of $0.7138, a figure that coincides with the top end of XRP’s latest rally. The assets moved to another Ripple address.
🚨 🚨 60,000,000 #XRP (42,831,410 USD) transferred from #Ripple to unknown wallethttps://t.co/ByoO9avnkB
— Whale Alert (@whale_alert) November 6, 2023
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Ripple’s XRP Transfer Now a Pattern
Ripple’s activities as an operational fintech firm with responsibilities to XRP are predictable. At the start of each month, the firm releases about 1 billion XRP into the market from escrow. This monthly transfer marks Ripple’s way of managing the circulation of XRP and, as such, bolsters a healthy market with liquidity.
Besides these initial transfers, it is not uncommon for Ripple to initiate other monthly transfers with little or no explanations. This latest 60 million XRP transfer is one of these transactions, which has triggered speculation of selloffs despite moving to another Ripple-affiliated address.
As reported earlier, the unexplained Ripple transfers formed a crucial subject of discussion in October as the company transferred millions of XRP to Bitstamp Exchange. One of Ripple’s addresses on Bitstamp received at least three tranches of XRP transfers from October 2 to October 11.
The first transfer featured 47,500,000 XRP transferred to Bitstamp on October 2. This was followed by another 42,500,000 XRP on October 9 and 23,000,000 XRP on October 11.
It is worth noting that Bitstamp does not enjoy a monopoly in receiving Ripple’s XRP transfers, as other exchanges, especially Bitvavo, also have a history of welcoming transfers from the company. The company also moves some XRP tokens across its addresses, like the latest transaction.
Why Selloff is Logical
While the latest transfer to its own address could invalidate concerns of selloffs, the thesis that Ripple is selling XRP with previous transfers sounds quite logical, as the company might be looking to cover operational expenses.
In addition, the funds could move from the recipient’s address to an exchange. However, this has not happened as of press time. If selloff is the basis for this transfer, it will also be logical as XRP soared to a weekly high of $0.7285, marking a key profit-taking level.
At press time, XRP’s market value is $0.699, up 2.96%. The coin has a trading volume of $3,390,635,568, which has soared 35.21%, while its market capitalization currently sits at $37,480,623,694.
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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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